Answered

Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Willis Limo Service purchased three used assets with the following characteristics: Residual Asset Cost Value Life Limo $12,000 $2,000 10 years Van 6,800 1,200 4 years Photocopier 1,500 250 5 years Assuming Willis uses straight-line depreciation, the composite depreciation rate is

Sagot :

Tundexi

Since Willis uses the straight-line depreciation, the composite depreciation rate will be 13.05%

Using the straight-line depreciation method:

Photocopier = ($12000 - $2000) / 10

Photocopier = $1000

Computer = ($6800 - $1200) / 4

Computer = $1400

Typewriter = ($1500 - $250) / 5

Typewriter = $250

Net depreciation = Photocopier amount + Computer amount + Typewriter amount

Net depreciation = $1000 + $1400 + $250

Net depreciation = $2650

Composite rate = Net depreciation*100 / Accumulated cost of asset)  

Composite rate = $2650*100 / ($12000 + $6800 + $1500)

Composite rate = $265,000 / $20,300

Composite rate = 13.0541872

Composite rate = 13.05%

In conclusion, since Willis uses the straight-line depreciation, the composite depreciation rate will be 13.05%

Read more about straight-line depreciation

brainly.com/question/7293773

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.