Composite depreciation.

Callon Co$.$ uses the composite method to depreciate its equipment. The following totals are for all of the equipment in the group:

Initial Residual Depreciable Depreciation

Cost Value Cost Per Year

$$1,000,000$ $$100,000$ $$900,000$ $$90,000$

Instructions

$($a$)$ What is the composite rate of depreciation? $($To the nearest tenth of a percent.$)$

$($b$)$ A machine with a cost of $$25,000$ was sold for $$15,000$ at the end of the third year. What entry should be made?