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In recent years, Riverbed Transportation purchased three used buses, Because of frequent turnover in the accounting department, a different accountant selected the depreciation method
In recent years, Riverbed 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 summarized as follows. Salvage Bus Acquired Cost Value Useful Life in Years Depreciation Method 1 1/1/18 $96.200 $5,000 4 Straight-line 2 1/1/18 121,000 10,000 4 Declining balance 3 1/1/19 95,100 9.000 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 123.000. Actual miles of use in the first 3 years were 2019,28,000: 2020, 32.000, and 2021.30.500 (a1) Your answer is correct For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, eg. 0.50)
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