In recent years Rapid Transportation purchased three used buses. Because of frequent employee turnover in the accounting department, a different accountant selected the depreciation method for each bus and various methods have been used. Information concerning the buses is summarized in the table:

For the declining-balance method, Rapid Transportation 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: 1997, 24,000; 1998, 34,000; and 1999, 30,000.
\section*{Instructions}

(a) Compute the amount of accumulated depreciation on each bus at December 31, 1998.

(b) If Bus 2 was purchased on April 1 instead of January 1, what would be the depreciation expense for this bus in 1996? In 1997?

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Bus Acquired Cost Salvage Value (in years) 1 Jan. 1, 1996 $ 96,000 $ 6,000 23 Jan. 1, 1996 Jan. 1, 1997 120,000 80,000 10,000 8,000 Useful Life 5 45 5 Depreciation Method Straight-line Declining-balance Units-of-activity