In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is shown as follows.

For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 120,000. Actual miles of use in the first 3 years were 2018, 24,000; 2019, 34,000; and 2020, 30,000.
Instructions
(a) Compute the amount of accumulated depreciation on each bus at December 31, 2019.
(b) If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 2018?

Transcribed Image Text:

Salvage Useful Life Bus Acquired Cost Vali Yes Depreciation Method 1/1/17 $96,000 $ 6,000 2 1/1/17 110,000 10,000 1/1/18 92,000 8,000 Straight-line Declining balac Units-of-activity 4