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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 Value Useful Life in Years Depreciation Method Bus Acquired Cost 95,00 6,000 Straight-line 2 1/1/15 125,000 10,500 Dedining-balance 3 1/1/16 90,600 8,0004Units-of-activity For the dedining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 118,000. Actual miles of use in the first 3 years were 2016, 27,500; 2017, 36,000; and 2018, 33,000
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