Based on the information presented, what is the group or composite life of the assets? Equipment 1825,000 P75,000Equipment 2300,000Equipment 3Total Cost60,000Estimated salvage valueEstimated life in years30,00020155• The company computes depreciation using the straight-line method.

1. Composite rate = ( Total Depreciation per year / Total Cost ) x 100 2. Composite life = Total…

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what is the group or composite life of the assets?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 14RE: (Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a...

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Question

Based on the information presented, what is the group or composite life of the assets?

Equipment 1
825,000 P
75,000
Equipment 2
300,000
Equipment 3
Total Cost
60,000
Estimated salvage value
Estimated life in years
30,000
20
15
5
• The company computes depreciation using the straight-line method.

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(Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a MACRS life of 7 years. The residual value of the asset is 35,000. Calculate the depreciation expense for Year 1 and Year 2 using MACRS.
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