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Problem # 2 : Fixed Assets Valuations Depreciation Methods In recent years, Blue Transportation purchased three trucks on January 1 , 2 0 2 4
Problem #: Fixed Assets ValuationsDepreciation Methods
In recent years, Blue Transportation purchased three trucks on January 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.
Truck # Cost: $ ; Salvage Value $ Number of Years: ; Depreciation Method:
Straightline
Truck #: Cost : Salvage Value: ; Number of Years: ; Depreciation Method:
Decliningbalance
Truck #: Cost: Salvage Value: $; number of years: ; Depreciation Method:
Unitsofactivity
For the decliningbalance method, the company uses the doubledeclining rate. For the
unitsofactivity method, total miles are expected to be Actual miles of use in the
first years were ; ; and
Instructions
a Compute the amount of accumulated depreciation on each bus at December
b what are the depreciation expenses for all three buses in and and
c Make journal entries for and under Double Declining Method
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