Use the Following Information for Questions 84 and 85

question 10

Multiple Choice

Use the following information for questions 84 and 85:
A schedule of machinery owned by Micco Co. is presented below: Micco computes depreciation by the composite method.
-The composite life (in years) for these assets is

• A) 15.6.
• B) 8.6.
• C) 8.9.
• D) 10.0.

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Definitions:

Building Expenses

Costs associated with the maintenance, repair, and running of a building.

Allocation Base

A criterion or measure used for distributing costs or expenses across different departments or products.

Building Depreciation

The systematic allocation of the cost of a building over its useful life to account for the decrease in its value over time.

Square Feet

A measurement unit for area, commonly used in real estate, equal to the area of a square with sides of one foot.