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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 shown as follows.
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Useful Life in Years Bus Cost 1 Acquired 1/1/17 1/1/17 1/1/18 4 Salvage Value $ 6,500 11,500 8,000 $ 95,600 120,000 83,640 Depreciation Method Straight-line Declining-balance Units-of-activity 2 4 3 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 122,000. Actual miles of use in the first 3 years were 2018, 24,000; 2019, 32,000; and 2020, 30,000. Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to o decimal places, e.g. 2, 125.) Accumulated depreciation BUS 1 66825 BUS 2 A BUS 3Step by Step Solution
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