Composite or Group Depreciation Is a Depreciation System Whereby

question 43

Multiple Choice

Composite or group depreciation is a depreciation system whereby

• A) the years of useful life of the various assets in the group are added together and the total divided by the number of items.
• B) the cost of individual units within an asset group is charged to expense in the year a unit is retired from service.
• C) a straight-line rate is computed by dividing the total of the annual depreciation expense for all assets in the group by the total cost of the assets.
• D) the original cost of all items in a given group or class of assets is retained in the asset account and the cost of replace?ments is charged to expense when they are acquired.

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Definitions:

Gray Limestone

A sedimentary rock primarily composed of calcium carbonate, often containing fossils, and typically forming in shallow marine environments.

Well-Sorted Sandstone

Sandstone comprised of grains that are uniform in size, indicating a specific and consistent energy environment during deposition.

Dark Porous

Referring to rocks that have a dark color and contain numerous small holes or pores.

Lichens

Symbiotic organisms made up of a fungus and either an algae or a cyanobacteria, living together and often found on rocks, trees, and soil.