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In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for
In recent years, Avery 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 Salvage Useful Life Depreciation s Acquired Cost Value in Years Method 96,000 6,500 Straight-line Declining-balance 128,000 11,000 5 95,100 9,000 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 123,000. Actual miles of use n the first 2 vears were 201 R 25 non 2017 21 nnn. and 201 2 500
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