Calculating the Rate of Depreciation
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Presented below is information related to LeBron James Manufacturing Corporation.
Asset
Cost
Estimated Salvage
Estimated Life (in years)
A $ 40,500 $ 5,500 10
B 33,600 4,800 9
C 36,000 3,600 9
D 19,000 1,500 7
E 23,500 2,500 6
Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.)
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Solution Summary
This solution provides a formatted MS Excel spreadsheet containing detailed illustrations, examples and notes that will enable a user to quickly calculate the rate of depreciation per year for plant assets under the composite method.
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Presented below is information related to LeBron James Manufacturing Corporation.
Original Estimated Estimated Depeciation Per Year
Asset Cost Salvage Life (in years) (straight line)
A $40,500 $5,500 10 $3,500
B $33,600 $4,800 9 $3,200
C $36,000 $3,600 9 $3,600
D $19,000 $1,500 7 $2,500
E $23,500 $2,500 6 $3,500
Instructions:
(a) Compute the rate of depreciation per year to be applied to the plant assets under the composite method.
Calculations
Note: Composite depreciation is a method of ...
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