Question
In recent years,SarasotaTransportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus,
In recent years,SarasotaTransportation 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.
Bus Acquired Cost Salvage Value Useful Life in Years DepreciationMethod
1 1/1/18 $99,300 $7,500 4 Straight-line
2 1/1/18 126,000 11,500 4 Declining-balance
3 1/1/19 91,100 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 be118,000. Actual miles of use in the first 3 years were 2019,27,000; 2020,34,500; and 2021,32,500.
Depreciation expense= $0.70 per unit
The amount of accumulated depreciation on each bus at December 31, 2020.(Round to 0 decimal places, e.g. 2,125.)
BUS 1=$
BUS 2=$
BUS 3=$
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