Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In recent years, Cullumber Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for

image text in transcribed
image text in transcribed
In recent years, Cullumber 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 Salvage Value Useful Life in Years Depreciation Method Acquired Cost 1 1/1/18 $ 95,000 $5,000 4 Straight-line 2 1/1/16 110,000 10.000 4 Declining-balance 3 1/1/19 73,500 7.500 4 Units of activity For the declining-balance method, the company cases the double-declining rate. For the units-of-activity method, total miles are expected to be 110,000. Actual miles of use in the first 3 years were 2019 23,000; 2020,31,000; and 2021.29,000. For Bus #3, calculate depreciation expense per mile under units-of-activity method (Round answer to 2 decimal proces, eg. 0.50.) Depreciation expense per mile Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round depreciation cost per unit to 2 decimal places, es 0.50 and depreciation rate to decimal places, eg, 15%. Round final answers to decimal places, eg. 2,125) Accumulated depreciation Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round depreciation cost per unit to 2 decimal places, eg: 0.50 and depreclation rate to O decimal places, eg. 15%. Round final answers to decimal places, eg. 2, 125) Accumulated depreciation BUS 1 $ BUS 2 $ BUS 3 VfBus 2 was purchased on April instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 2019? (Round answers to decimal places, c.8. 2.125.) (1) 2018 (2) 2019 Depreciation expense $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Stats Data And Models

Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock

4th Edition

321986490, 978-0321989970, 032198997X, 978-0321986498

Students also viewed these Accounting questions