Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 9-2A In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation
Problem 9-2A 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. Depreciation Salvage Useful Life Acquired Bus Cost Value in Years Method 4 1 1/1/15 $95,800 5,000 Straight-line 2 1/1/15 125,000 11,500 5 Declining-balance 4 Units-of-activity 3 1/1/16 84,880 8,000 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 124,000. Actual miles of use in the first 3 years were 2016, 28,000; 2017, 36,000; and 2018, 33,000. Your answer is correct. For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. O.50.) Depreciation expense 0.62 per mile SHOW SOLUTION SHOW ANSWER LINK TO TEXT Your answer is partially correct. Try again. Compute the amount of accumulated depreciation on each bus at December 31, 2017. (Round depreciation cost per unit to 2 decimal places, e.g. O.50 and depreciation rate to 0 decimal places, e. g. 15%. Round final answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 65850 BUS 2 17828.1 BUS 3 39680 LINK TO TEXT Your answer is incorrect. Try again. If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2015 and (2) 2016? (Round answers to 0 decimal places, e.g. 2,125.) (1) 2015 (2) 2016 Depreciation expense 58125 41463 LINK TOXT
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started