In recent years Lakeshore Transportation purchased three used buses. Becauseof 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, Lakeshore 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: 1999, 24,000; 2000, 34,000; and 2001, 30,000.

Instructions

(a) Compute the amount of accumulated depreciation on each bus at December 31, 2001.

(b) If Bus 2 was purchased on April 1 instead of January 1, what would be the depreciation expense for this bus in 1999? In 2000? .

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Bus Acquired Cost 1 Jan. 1, 1999 $ 86,000 2 Jan. 1, 1999 3 Jan. 1, 1999 140,000 80,000 Salvage Value $ 6,000 10,000 8,000 Useful Life (in years) 545 Depreciation Method Straight-line Declining-balance Units-of-activity