Chapter 11, Problem 9E

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

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	9
D	$19,000	$1,500	7
E	$23,500	$2,500	6

(a)

To compute: To compute the depreciation rate per year to be applied to the plant assets under the composite method.

To determine

(b)

To prepare: To prepare the depreciation adjusting entry.

To determine

(c)

To prepare: To prepare the entry to record the sale of asset.