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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 #2: Fixed Assets ValuationsDepreciation Methods
In recent years, Blue Transportation purchased three trucks on January 1,2024. 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 #1 Cost: $ 130,000; Salvage Value $ 10,000, Number of Years: 8; Depreciation Method:
Straight-line
Truck #2: Cost : 41,000, Salvage Value: 1,000; Number of Years: 5; Depreciation Method:
Declining-balance
Truck #3: Cost: 102,000 Salvage Value: $8,000; number of years: 6; Depreciation Method:
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 120,000. Actual miles of use in the
first 3 years were 2024,24,000; 2025,34,000; and 2026,30,000.
Instructions
(a) Compute the amount of accumulated depreciation on each bus at December 31,2024.
(b) what are the depreciation expenses for all three buses in (1)2024 and (2)2025 and (3)
2026?
( c) Make journal entries for 2025 and 2026 under Double Declining Method

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