California Utilities owns a power plant that consists of the following assets, all acquired on January...

 

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California Utilities owns a power plant that consists of the following assets, all acquired on January 1. Asset Building Machinery Cost $660,000 209,000 Other equipment 110,000 Estimated Estimated Residual Value Life (Years) $22,000 30 10 6 0 11,000 Required a. Compute the total straight-line depreciation for the first year on all items combined. b. Compute the composite depreciation rate (based on cost) and the composite life. c. Provide the entry to record composite depreciation for the first year. d. Assume that all of the Other equipment was sold three years later for $13,200 cash. Prepare the entry for the sale of that equipment. Note: Round answers to the nearest whole dollar. California Utilities owns a power plant that consists of the following assets, all acquired on January 1. Asset Building Machinery Cost $660,000 209,000 Other equipment 110,000 Estimated Estimated Residual Value Life (Years) $22,000 30 10 6 0 11,000 Required a. Compute the total straight-line depreciation for the first year on all items combined. b. Compute the composite depreciation rate (based on cost) and the composite life. c. Provide the entry to record composite depreciation for the first year. d. Assume that all of the Other equipment was sold three years later for $13,200 cash. Prepare the entry for the sale of that equipment. Note: Round answers to the nearest whole dollar.

Answer rating: 100% (QA)

Answera Straight line Depreciation Original Value Salvage V... View the full answer