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 | 1/1/13 | $97,200 | $5,700 | 5 | Straight-line | |||||
2 | 1/1/13 | 122,000 | 10,000 | 5 | Declining-balance | |||||
3 | 1/1/14 | 78,200 | 8,000 | 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 117,000. Actual miles of use in the first 3 years were: 2014, 27,600; 2015, 32,400; and 2016, 30,400.
question 1=
Compute the amount of accumulated depreciation on each bus at December 31, 2015. (Round answers to 0 decimal places, e.g. 2,125.)
2015 | ||
BUS 1 | $ | |
BUS 2 | $ | |
BUS 3 | $ |
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