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Question
A schedule of machinery owned by Tara Corporation is presented below:
Estimated Estimated
Machine Cost Salvage Value Useful Life
X $600,000 $40,000 14 years
Y $800,000 $80,000 10 years
Z $300,000 $60,000 6 years
Required:
(a) Calculate the composite rate of depreciation rate for these assets.
(b) Calculate the composite life in years for these assets.
(c) Assume that Machine Z was sold for $250,000 on December 31, 2019. Prepare the journal entry to record the sale.
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