A schedule of machinery owned by Red Bird Manufacturing Company is as follows:
Total Estimated Cost: Machine A: $450,000, Machine B, $170,000, Mach C $40,000
Estimated Salvage Value: Mach A: $30,000, Mach B: $10,000, Mach C: $0
Life in Years: Mach A: 6, Mach B: 8, Mach C: 4© BrainMass Inc. brainmass.com December 15, 2020, 7:03 pm ad1c9bdddf
Composite life = Total depreciable cost / Total depreciation per year
Depreciable cost of machine A = 450,000-30,000=420,000 (cost - ...
This solution provides a step-by-step tutorial explaining how to use the strait-line method to calculate the composite life of an organization's assets.