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Problem 10-2A In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation
Problem 10-2A In recent years, Avery 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 Useful Life Depreciation Bus Acquired Value in Years Method Cost 95,000 5,000 Straight-line 110,000 10,000 Declining-balance 3 1/1/16 88,000 7,500 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 115,000. Actual miles of use in the first 3 years were 2016, 23,000; 2017, 31,000; and 2018, 29,000. For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) per mile Depreciation expense LINK TO TEXT Compute the amount of accumulated depreciation on each bus at December 31, 2017. (Round answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 BUS 2 BUS 3 LINK TO TEXT
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