Question
In recent years, Pharoah Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for
In recent years, Pharoah 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 | 1/1/17 | $ 95,500 | $ 5,000 | 5 | Straight-line | |||||
2 | 1/1/17 | 126,000 | 10,500 | 5 | Declining-balance | |||||
3 | 1/1/18 | 87,860 | 8,500 | 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 128,000. Actual miles of use in the first 3 years were 2018, 23,500; 2019, 33,500; and 2020, 30,000.
For Bus # 3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decima, places, eg.50.j Depreciable cost 62 per mile LINK TO TEXT VIDEO: SIMILAR PROBLEM Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to o decimal places, e.g. 15%. Round final answers to 0 decimal places, eg. 2,125.) Accumulated depreciation BUS 1 BUS 2 BUS 3 LINK TO TEXT VIDEO: SIMILAR PROBLEM If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 2018? (Round answers to O decimal places, e.g. 2,125.) 2017 2018 Depreciation expense s Click if you would like to Show Work for this question: Open Show Work
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