10-02A a1-b (Part Level Submission)

In recent years, Pronghorn 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 summarized as follows.

Bus

Acquired

Cost

Salvage

Value

Useful Life

in Years

Depreciation

Method

11/1/18$97,600$5,0004Straight-line21/1/18115,00010,5004Declining-balance31/1/1994,8008,0005Units-of-activity

For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be124,000. Actual miles of use in the first 3 years were 2019,27,500; 2020,33,000; and 2021,29,500.

(a1)

Your answer is correct.

For Bus #3, calculate depreciation expense per mile under units-of-activity method.(Round answer to 2 decimal places, e.g. 0.50.)

Depreciation expense$

per mile

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Attempts: 1 of 3 used

(a2)

Compute the amount of accumulated depreciation on each bus at December 31, 2020.(Round answers to 0 decimal places, e.g. 2,125.)

Accumulated depreciation

BUS 1

$

BUS 2

$

BUS 3

$

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(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.