E11-9 Presented below is information related to LeBron
James Manufacturing Corporation.
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
Compute the rate of depreciation per year to be applied to the plant
assets under the composite method.
Composite rate
Prepare the adjusting entry necessary at the end of the year to record
depreciation for the year.
|
Account
Titles and Explanation
|
Debit
|
Credit
|
Prepare the entry to record the sale of asset D for cash of $4,800. It
was used for 6 years, and depreciation was entered under the
composite method.
|
Account
Titles and Explanation
|
Debit
|
Credit
|
SOLUTION
PREVIEW
(a)
|
|
Asset |
Cost |
Estimated
Salvage
|
Depreciable
Cost
|
Estimated Life
|
Depreciation
per Year
|
|
|
A
|
$ 40,500
|
$ 5,500
|
$ 35,000
|
10
|
$ 3,500
|
|
|
B
|
33,600
|
4,800
|
28,800
|
9
|
3,200
|
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