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Question - Tonyo Company uses the composite method of depreciation and has a composite rate of 25%. During 20x1, it sold assets with an original cost of 100,000 (residual value of 20,000) for 80,000 and acquired 60,000 worth of new assets (residual value of ?10,000). The original group of assets had the following characteristics: Total Cost 250,000 Total Residual Value 30,000.
The above original group includes the assets sold in 20x8 but not the assets purchased in 20x8. How much is the depreciation in 20x8?
a. 62,500
b. 52,500
c. 47,500
d. 46,500
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