Question
In recent years, Bramble Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for
In recent years, Bramble 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.
Bus | Acquired | Cost | Salvage Value | Useful Life in Years | Depreciation Method | |||||
1 | 1/1/18 | $ 97,600 | $ 8,000 | 5 | Straight-line | |||||
2 | 1/1/18 | 114,000 | 11,000 | 5 | Declining-balance | |||||
3 | 1/1/19 | 76,200 | 9,000 | 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 112,000. Actual miles of use in the first 3 years were 2019, 27,500; 2020, 33,000; and 2021, 30,500.
(a2) Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round depreciation 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 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 LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 0 of 3 usedStep by Step Solution
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