mpute depreciation under rent methods. 21 P9-2A In recent years, Freeman Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depre- ciation method for each bus, and various methods were selected. Information concerning the buses is summarized below. Residual Value Useful Life Bus Acquired Cost in Years I 1/1/15 96,000 6,000 5 2 3 1/1/15 1/1/16 140,000 92,000 10,000 8,000 4 5 Depreciation Method Straight-line Declining-balance Units-of-activity Problems: Set A 467 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 2016, 24,000; 2017, 36,000; and 2018, 31,000. Instructions (a) Compute the amount of accumulated depreciation on each bus at December 31, 2017. (b) If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2015 and (2) 2016? (a) Bus 2, 2016, 105,000