On January 1, 2010, the Winter Co Required:
A

Essay

On January 1, 2010, the Winter Co.acquired three assets that it intends to combine into a single account and depreciate using the composite depreciation (straight-line)method.The assets have the following characteristics:
$\begin{array}{rrrr}\text {Asset}&\text {Cost}&\text { Residual Value}&\text { Life}\\1 & \$ 100,000 & \$ 16,000 & 6 \text { year: } \\2 & 90,000 & 4,000 & 8 \text { year: } \\3 & 62,500 & 3,700 & 4 \text { year: }\end{array}$
Required:
a. Determine the composite rate for depreciation of these assets.
b. Why did Winter Co. use a composite rate then a group depreciation rate?