Presented below is information related to Indigo Manufacturing Corporation. Asset Cost Estimated Salvage Estimated Life (in...

Presented below is information related to Indigo Manufacturing Corporation.

Asset	Cost	Estimated Salvage		Estimated Life (in years)
A	$43,335		$5,885		10
B	35,952		5,136		9
C	38,520		3,852		9
D	20,330		1,605		7
E	25,145		2,675		6

1.Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.)

2.Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use Plant Assets related account.)

3..Prepare the entry to record the sale of asset D for cash of $5,136. It was used for 6 years, and depreciation was entered under the composite method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Use Plant Assets related account.)

Expert Solution

ekkarill92 answered 1 year ago

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