Presented below is information related to Morrow Manufacturing Corporation. Asse

Question

Presented below is information related to Morrow Manufacturing Corporation.

Asset Cost Estimated Salvage Estimated Life (in years)
A $40,500 $5,500 10
B 33,600 4,800 9
C 36,000 3,600 8
D 19,000 1,500 7
E 23,500 2,500 6


(a) Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answers to 2 decimal places, i.e. 12.25.)



Composite life years
Composite rate %


(b) Prepare the adjusting entry necessary at the end of the year to record depreciation for the year.

Explanation / Answer

Asset Cost Salvage V Depreciation Estimated Depreciation Base life Expense A 40,500.00 5,500.00 35,000.00 10.00 3,500.00 B 33,600.00 4,800.00 28,800.00 9.00 3,200.00 C 36,000.00 3,600.00 32,400.00 8.00 4,050.00 D 19,000.00 1,500.00 17,500.00 7.00 2,500.00 E 23,500.00 2,500.00 21,000.00 6.00 3,500.00 Total 152,600.00 17,900.00 134,700.00 16,750.00 Composite Rate 0.11

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.