Question
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.
Bus | Acquired | Cost | Salvage Value | Useful Life in Years | Depreciation Method | |||||
1 | 1/1/15 | $ 99,200 | $ 6,000 | 4 | Straight-line | |||||
2 | 1/1/15 | 111,000 | 11,500 | 4 | Declining-balance | |||||
3 | 1/1/16 | 92,500 | 8,500 | 4 | 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 2016, 26,000; 2017, 34,500; and 2018, 30,000.
For Bus # 3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, eg-0.50.) Depreciation expense per mile LINK TO TEXT Compute the amount of accumulated depreciation on each bus at December 31, 2017. (Round answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 BUS 2 BUS 3 LINK TO TEXT If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2015 and (2) 2016? (Round answers to 0 decimal places, e.g. 2,125.) 2015 2016 Depaion expense LINK TO TEXTStep 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