Question - The following is a schedule of machinery owned by Martin Manufacturing Company.
|
|
Total Cost
|
Estimated Salvage Value
|
Estimated Life in Years
|
|
Machine A
|
$600,000
|
$110,000
|
20
|
|
Machine B
|
315,000
|
30,000
|
10
|
|
Machine C
|
84,000
|
0
|
15
|
|
Machine D
|
107,000
|
7,000
|
5
|
|
|
$1,106,000
|
|
|
Martin computes depreciation on the straight-line basis. Based on the information presented, compute the:
(i) Composite life of these assets (in years).
(ii) Composite depreciation rate.