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In recent years, Blue Spruce Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method
In recent years, Blue Spruce 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 Bus Acquired Cost Value in Years Method 1 1/1/18 $ 95,600 $ 8,000 4 Straight-line 2 1/1/18 119,000 12,000 5 Declining-balance 3 1/1/19 91,300 8,000 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 119,000. Actual miles of use in the first 3 years were 2019, 28,000; 2020, 35,000; and 2021, 31,000. 5 (a1) Your answer is incorrect. Try again. For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense 0.91 per mile Click if you would like to show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 3 of 3 used (a2) Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 BUS 2 $ BUS 3 $ Click if you would like to Show Work for this question: Open Show Work
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