Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In recent years, Sheffield Transportation purchased three used buses. Because of frequent turnover in the method for each bus, summarized as follows. accounting department, a

image text in transcribed
image text in transcribed
In recent years, Sheffield Transportation purchased three used buses. Because of frequent turnover in the method for each bus, summarized as follows. accounting department, a different accountant selected the depreciation and various methods were selected. Information concerning the buses is Salvage Useful Life Depreciation Bus Acquired Cost Value in Years 4 4 Method $98,200 8,000 124,000 11,500 7,500 Straight-line Declining-balance Units-of-activity 3 91,500 For the declining-balance method, the company uses the double-declining rate. For the units- of-activity method, total miles are expected to be 120,000. Actual miles of use in the first 3 years were 2019, 26,000; 2020, 31,500; and 2021, 29,500. 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 per mile Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 BUS 2 BUS 3 If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 2019? (Round answers to O decimal places, e.g. 2,125.) 2018 2019 Depreciation expense s

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

More Books

Students also viewed these Accounting questions