Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help in this question but please show all steps and calculation In recent years, Savana Transportation purchased three used buses. Because of frequent
I need help in this question but please show all steps and calculation
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 1/1/18 $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 1. 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) $8,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started