Presented below is information related to Vaughn Manufacturing Corporation.AssetCostEstimated SalvageEstimated Life (in years)A.$54,700$6,5001033,2005,3009.36,8004,4009.18,2001,400723,9002,9006.(a)Your answer has been saved. See score details after the due date.Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2decimal place, e.g. 4.83%.)Composite rate10.44eTextbook and MediaB. Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. (If no entry is required, select "Noentry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do notindent manually. Use Plant Assets related account.)Account Titles and ExplanationDebitCredit

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Description: Presented below is information related to Vaughn Manufacturing Corporation.AssetCostEstimated SalvageEstimated Life (in years)A.$54,700$6,5001033,2005,3009.36,8004,4009.18,2001,400723,9002,9006.(a)Your answer has been saved. See score details after

>Long term assets are generally depreciable. >This means that their cost is expensed over their useful life as Depreciation expense. >This depreciation can be computed and recorded for individual asset or it can computed and recorded for a group of assets. >When it is recorded for group of asset, it is termed as 'Composite Depreciation' Asset Cost Estimated Salvage Depreciable base Estimated life Depreciation per year [A] [B] [C = A - B] [D] [E = C/D] A $54,700 $6,500 $48,200 10 $4,820 B $33,200 $5,300 $27,900 9 $3,100 C $36,800 $4,400 $32,400 9 $3,600 D $18,200 $1,400 $16,800 7 $2,400 E $23,900 $2,900 $21,000 6 $3,500 $166,800 $20,500 $146,300 $17,420-[a] A Total Depreciation per year $17,420 B Total Cost of Group assets $166,800 C = (A/B) x 100 Composite rate 10.44% -[b] Accounts title Debit Credit Depreciation expense $17,420 Accumulated Depreciation $17,420 (to record depreciation for the period)

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Presented below is information related to Vaughn Manufacturing Corporation. Asset Cost Estimated Salvage Estimated Life (in years) A $54,700 $6,500 10 33,200 5,300 6. 36,800 4,400 9. 18,200 1,400 7 23,900 2,900 6. (a) Your answer has been saved. See score details after the due date, Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round an decimal place, e.g. 4.83%.) Composite rate 10.44

Presented below is information related to Vaughn Manufacturing Corporation. Asset Cost Estimated Salvage Estimated Life (in years) A $54,700 $6,500 10 33,200 5,300 6. 36,800 4,400 9. 18,200 1,400 7 23,900 2,900 6. (a) Your answer has been saved. See score details after the due date, Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round an decimal place, e.g. 4.83%.) Composite rate 10.44

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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wifty Corporation constructed a building at a cost of $14200000. Weighted-average accumulated expenditures were $5560000, actual interest was $566000, and avoidable interest was $288000. If the salvage value is $1120000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is $473200. $362200. $334200. $341400.
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