Use the Following Information for Questions
a Schedule of Machinery

question 63

Multiple Choice

Use the following information for questions
A schedule of machinery owned by Dougan Co.is presented below: $$\begin{array} { l c c c } & \text { Total Cost } & \begin{array} { c } \text { Estimated } \\\text { Salvage Value }\end{array} & \begin{array} { c } \text { Estimated } \\\text { Life in Years }\end{array} \\\hline \text { Machine A } & \$ 320,000 & \$ 20,000 & 12 \\\text { Machine C } & 390,000 & 30,000 & 10 \\\text { Machine M } & 225,000 & 15,000 & 6\end{array}$$ Dougan computes depreciation by the composite method.
-The composite life (in years) for these assets is

• A)9.1.
• B)9.3.
• C)9.7.
• D)10.0.

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Definitions:

Market Equilibrium

A situation where the quantity demanded of a good or service equals the quantity supplied, leading to a stable price.

Actual Price

The price at which a good or service is sold in the market, not taking into account discounts or premiums.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.

Quantity Supplied

The amount of a commodity that producers are willing to sell at a particular price at a given period.