On January 1, 2013, the Wintergreen Co. acquired three assets that it intends to combine into a single account and depreciate using the composite depreciation (straight-line) method. The assets have the following characteristics:
Required:
a.Determine the composite rate for depreciation of these assets.
b.Why did Wintergreen Co. use a composite rate than a group depreciation rate?

Question

On January 1, 2013, the Wintergreen Co. acquired three assets that it intends to combine into a single account and depreciate using the composite depreciation (straight-line) method. The assets have the following characteristics:  
Required: 
a.Determine the composite rate for depreciation of these assets.
b.Why did Wintergreen Co. use a composite rate than a group depreciation rate?

Quizplus · Accepted Answer

The Answer of On January 1, 2013, the Wintergreen Co. acquired three assets that it intends to combine into a single account and depreciate using the composite depreciation (straight-line) method. The assets have the following characteristics:  
Required: 
a.Determine the composite rate for depreciation of these assets.
b.Why did Wintergreen Co. use a composite rate than a group depreciation rate?