Question
In recent years, Flounder Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting
In recent years, Flounder 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 | Salvage Value | Useful Life in Years | Depreciation Method | |||||
---|---|---|---|---|---|---|---|---|---|---|
1 | Jan. 1, 2020 | $ 97,600 | $ 6,000 | 4 | Straight-line | |||||
2 | Jan. 1, 2020 | 129,000 | 12,000 | 5 | Declining-balance | |||||
3 | Jan. 1, 2021 | 89,200 | 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 116,000. Actual miles of use in the first 3 years were 2021, 24,000; 2022, 35,500; and 2023, 30,000.
Compute the amount of accumulated depreciation on each bus at December 31, 2022.
Accumulated depreciation | ||
---|---|---|
BUS 1 | $enter a dollar amount | |
BUS 2 | $enter a dollar amount | |
BUS 3 | $enter a dollar amount |
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