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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. For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 116, 100. Actual miles of use in the first 3 years were: 2013, 23, 100; 2014, 31, 300; and 2015, 30, 100. For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. $0.50.) Compute the amount of accumulated depreciation on each bus at December 31, 2014. (Round answers to 0 decimal places, e.g. $2, 125.) If bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in 2012 and 2013? (Round answers to 0 decimal places, e.g. $2, 125.)
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