Callon Co. uses the composite method to depreciate its equipment. The following totals are for all of the equipment in the group:
Initial
Cost |
|
Residual
Value |
|
Depreciable
Cost |
|
Depreciation
Per Year |
| $900,000 |
|
$100,000 |
|
$800,000 |
|
$80,000
|
What is the composite rate of depreciation?
A machine with a cost of $23,000 was sold for $14,000 at the end of the third year. What entry should be made?