The following is a schedule of machinery owned by PERSEVERANCE Manufacturing Company. EstimatedEstimated TotalSalvageLife in CostValueYearsMachine AP 600,000P110,00020Machine B 315,000 30,00010Machine C 84,000 015Machine D 107,000 7,0005 P1,106,000 PERSEVERANCE computes depreciation on a straight-line basis. Based on the information presented, compute the: (1)Composite life of these assets (in years).(2)Composite depreciation rate.

Given the following information:

Answered: The following is a schedule of…

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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The following is a schedule of machinery owned by PERSEVERANCE Manufacturing Company.

		Estimated	Estimated
	Total	Salvage	Life in
	Cost	Value	Years
Machine A	P 600,000	P110,000	20
Machine B	315,000	30,000	10
Machine C	84,000	0	15
Machine D	107,000	7,000	5
	P1,106,000

PERSEVERANCE computes depreciation on a straight-line basis. Based on the information presented, compute the:

(1)	Composite life of these assets (in years).
(2)	Composite depreciation rate.

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