Information for heterogeneous assets A, B, and C of Health Clubs of America is provided below.The company uses composite depreciation for these assets.
$\begin{array}{llll}
&&\text {Estimated Residual}&\text {Estimated}\
\text { Asset}&\text { Cost}&\text {Value}&\text { Life}\
\text { A } & \$ 100,000 & \$ 10,000 & 9 \text { yerrs } \
\text { B } & 60,000 & 4,000 & 8 \text { yers } \
\text { C } & 40,000 & 8,000 & 4 \text { years }
\end{array}$ Required:
a. Calculate the composite depreciation rate.
b. Journalize the sale of Asset C for $ \$ 28,000 $ after two full years of use

Question

Information for heterogeneous assets A, B, and C of Health Clubs of America is provided below.The company uses composite depreciation for these assets.
 $\begin{array}{llll}
&&\text {Estimated Residual}&\text {Estimated}\
\text { Asset}&\text { Cost}&\text {Value}&\text { Life}\
\text { A } & \$ 100,000 & \$ 10,000 & 9 \text { yerrs } \
\text { B } & 60,000 & 4,000 & 8 \text { yers } \
\text { C } & 40,000 & 8,000 & 4 \text { years }
\end{array}$ Required:
 a. Calculate the composite depreciation rate.
b. Journalize the sale of Asset C for $ \$ 28,000 $ after two full years of use

Quizplus · Accepted Answer

The Answer of Information for heterogeneous assets A, B, and C of Health Clubs of America is provided below.The company uses composite depreciation for these assets.
 $\begin{array}{llll}
&&\text {Estimated Residual}&\text {Estimated}\
\text { Asset}&\text { Cost}&\text {Value}&\text { Life}\
\text { A } & \$ 100,000 & \$ 10,000 & 9 \text { yerrs } \
\text { B } & 60,000 & 4,000 & 8 \text { yers } \
\text { C } & 40,000 & 8,000 & 4 \text { years }
\end{array}$ Required:
 a. Calculate the composite depreciation rate.
b. Journalize the sale of Asset C for $ \$ 28,000 $ after two full years of use

Information for Heterogeneous Assets A, B, and C of Health