Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In recent years, Culver Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting
In recent years, Culver Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Bus Acquired Cost Value Salvage Useful Life in Years Depreciation Method 1 Jan. 1,2020 $ 98,900 $5,000 5 Straight-line 2 Jan. 1, 2020 120,000 11,500 5 Declining-balance 3 Jan. 1, 2021 90,800 7,500 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 119,000. Actual miles of use in the first 3 years were 2021,26,500; 2022, 32,000; and 2023,29,000. (a1) Your answer is correct. 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 $ (a2) (b) eTextbook and Media Your answer is partially correct. 0.7 per mile Compute the amount of accumulated depreciation on each bus at December 31, 2022. BUS 1 $ BUS 2 $ BUS 3 $ Accumulated depreciation eTextbook and Media Save for Later Your answer is incorrect. 56340 37500 Attempts: 1 of 5 used Attempts: 2 of 5 used Submit Answer If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2020 and [2] 2021? (Round answers to O decimal places, eg. 5,275.) (1) 2020 Descscistics avances (2) 2021
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started