Question

Exercise 11-09 (Part Level Submission) Presented below is information related to Coronado Manufacturing Corporation. Asset Estimated Life (in years) Cost $50,000 32,400 36,200 20,000 23,100 Estimated Salvage $5,000 4,500 3,800 1,800 3,300 Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 deci Composite rate Click if you would like to Show Work for this question: Open Show Work

Answer 1

Asset	Cost	Salvage Value	Depreciable Value	Estimated Life	Annual Depreciation
a	b	c	d=b-c	e	f=d/e
A	$             50,000	$               5,000	$                      45,000	10	$                            4,500
B	$             32,400	$               4,500	$                      27,900	9	$                            3,100
C	$             36,200	$               3,800	$                      32,400	9	$                            3,600
D	$             20,000	$               1,800	$                      18,200	7	$                            2,600
E	$             23,100	$               3,300	$                      19,800	6	$                            3,300
Total	$         1,61,700				$                          17,100
	Composite Depreciation Rate = Total Annual Depreciation/ total cost
		=$17100/161700
		10.58%