Problem #$2$: Fixed Assets Valuations$$Depreciation 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