Presented below is information related to Waterway Manufacturing Corporation. Asset   Cost   Estimated Salvage   Estimated Life (in years) A   $53,800     $6,100       10   B   32,200     5,200       9   C   36,500     4,100       9   D   19,000     1,500       7   E   24,000     3,300       6   (a)     Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.) Composite rate   enter the composite rate in percentages rounded to 2 decimal places

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Presented below is information related to Waterway Manufacturing Corporation.

Asset
 
Cost
 
Estimated Salvage
 
Estimated Life (in years)
A
  $53,800     $6,100       10  
B
  32,200     5,200       9  
C
  36,500     4,100       9  
D
  19,000     1,500       7  
E
  24,000     3,300       6  

(a)

 
 
Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.)

Composite rate  
enter the composite rate in percentages rounded to 2 decimal places
 %
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to prepare an adjusting entry would it be, debit depreciation expense for 17320, and credit AD-equipment for 17320?

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