Homework Answers
Please find the detailed answer as follows:
Depreciation Expense (A) = (72200 - 7220)/10 = 6,498
Depreciation Expense (B) = (53300 - 5330)/5 = 9,594
Depreciation Expense (C) = (100,040 - 4880)/12 = 7,930
Total Depreciation Expense = 6498 + 9594 + 7930 = 24,022
Composite depreciation rate = 24022/(72,200 + 53300 + 100,040)*100 = 10.65%
-----
Composite life = (72,200 - 7220 + 53,300 - 5330 + 100,040 - 4880)/24,022 = 8.66 years
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