Buffalo, Inc., uses composite depreciation for its assets. Buffalo owns a car with a cost of $25,000, a residual value of $1,500, and a useful life of 5 years; as well as equipment with a cost of $7,500, a residual value of $750, and a useful life of 10 years. Based on this information, calculate Buffalo's composite depreciation rate. Round your answer to two decimal places.

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
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Problem 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...
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Buffalo, Inc., uses composite depreciation for its assets. Buffalo owns a car with a cost of $25,000, a residual value of $1,500, and a useful life of 5 years; as well as equipment with a cost of $7,500, a residual value of $750, and a useful life of 10 years. Based on this information, calculate Buffalo's composite depreciation rate. Round your answer to two decimal places.

 

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