Problem
Presented below is information related to oriole manufacturing Corporation.
Asset Cost Estimated Salvage Estimated Life (in years)
A $50,220 $6,820 10
B 41,664 5,952 9
C 44,640 4,464 9
D 23,560 1,860 7
E 29,140 3,100 6
Compute the rate of depreciation per year to be applied to plant assets under the composite methods
Prepare the adjusting entry necessary at the end of the year to record depreciation for the year
Prepare the entry to record the sales of asset D for cash of $5,952. It was used for 6 years, and depreciated was entered under the composite method.