Composite depreciation on the straight-line method


Problem:

A schedule of machinery owned by Red Bird Manufacturing Company is as follows:

Total Estimated Cost: Machine A: $450,000, Machine B, $170,000, Mach C $40,000

Estimated Salvage Value: Mach A: $30,000, Mach B: $10,000, Mach C: $0

Life in Years: Mach A: 6, Mach B: 8, Mach C: 4

Red Bird computes composite depreciation on the straight-line method. What is the "composite life" of these assets?

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Accounting Basics: Composite depreciation on the straight-line method
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