Happy Company owned a power plant which consisted of the following assets all acquired at the...

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Happy Company owned a power plant which consisted of the following assets all acquired at the beginning of current year: Building Machinery Equipment Cost 6,100,000 2,550,000 1,030,000 Residual value 100,000 50,000 30,000 Useful life in years 20 5 10 Required: a. Compute the composite rate. b. Compute the composite life. c. Prepare journal entry to record the depreciation for the current year following the composite method. d. Prepare journal entry to record the retirement of the machinery at the end of the fifth year assuming the proceeds from retirement amount to P40,000. e. Prepare journal entry to record the depreciation for the sixth year following the composite method. Happy Company owned a power plant which consisted of the following assets all acquired at the beginning of current year: Building Machinery Equipment Cost 6,100,000 2,550,000 1,030,000 Residual value 100,000 50,000 30,000 Useful life in years 20 5 10 Required: a. Compute the composite rate. b. Compute the composite life. c. Prepare journal entry to record the depreciation for the current year following the composite method. d. Prepare journal entry to record the retirement of the machinery at the end of the fifth year assuming the proceeds from retirement amount to P40,000. e. Prepare journal entry to record the depreciation for the sixth year following the composite method.

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Sure lets go through each of your requirements step by step a Compute the composite rate Composite Rate Total Depreciable Cost Total Useful Life Total ... View the full answer