Group Depreciation
Holdaway, Inc., a small furniture manufacturer, purchased the following assets at the end of 2007.
|
Description |
Cost |
Salvage |
Life |
|
Delivery truck |
$24,000 |
$5,000 |
5 years |
|
Circular saws |
900 |
130 |
7 years |
|
Workbench |
320 |
— |
8 years |
|
Forklift |
9,000 |
500 |
5 years |
Compute the following amounts for 2008 using group depreciation on a straight line basis:
1. Depreciation expense
2. Group depreciation rate
3. Average life of the assets