Buffalo, Inc., uses composite depreciation for its assets. Buffalo, Inc., owns a car with a cost of

Question:

Buffalo, Inc., uses composite depreciation for its assets. Buffalo, Inc., owns a car with a cost of $25,000, a residual value of $1,500, and a useful life of 5 years; as well as equipment with a cost of $7,500, a residual value of $750, and a useful life of 10 years. Based on this information, calculate Buffalo, Inc.’s, composite depreciation rate.