Error in Recording Depreciation Expense _Beeline Bus Company purchased 3 buses at $300,000 each on January 1, 2000. On January 1, 2002, the company controller discovered that the estimated scrap value of $20,000 per bus had been ignored in recording straight-line depreciation in 2000 and 2001. The estimated economic lives of the buses remain at 10 years.

a. What amount of depreciation was recorded in 2000 and 2001?

b. What amount of depreciation expense should have been recorded in 2000 and 2001?

c. What amount of depreciation expense will Beeline report on the 3 buses in 2002?

d. How is the error in recording depreciation expense reported in 2002?