Assignment 1 CLO1 In recent years, Savana 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. Compute depreciation under different methods. Bus Acquired Cost Salvage Value Useful Life in Years Depreciation Method 1 1/1/18 $96,000 $16,000 5 Straight-line 2 1/1/18 110,000 10,000 4 Declining-balance 3 1/1/19 98,000 8,000 5 Units-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 be 120,000. Actual miles of use in the first 3 years were 2019, 24,000; 2020, 34,000; and 2021, 30,000. Instructions 01. Compute the annual depreciation expense and accumulated depreciation on each bus till December 31, 2020. 2. If Bus 2 was purchased on July 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 2019? 3. Record the transactions if bus (2) is sold at the end of 2020 for: (a) $ 15,000, and (b) $8,000