Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 9-2A In recent years, Larkspur Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation

image text in transcribed
Problem 9-2A In recent years, Larkspur 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 shown as follows. Useful Life in Years Bus Acquired 1/1/17 1/1/17 1/1/18 Cost $ 99,800 124,000 78,800 Salvage Value $6,000 11,000 8,000 Depreciation Method Straight-line Declining-balance Units-of-activity 5 For the declining-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 2018, 23,000; 2019, 31,500; and 2020, 31,500. For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost per mile LINK TO TEXT VIDEO: SIMILAR PROBLEM Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to o decimal places, e.g. 15%. Round final answers to o decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 BUS 2 BUS 3 LINK TO TEXT VIDEO. SIMILAR PROBLEM If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 2018? (Round answers to o decimal places, e.g. 2,125.) (1) 2017 2018 Depreciation expense Click if you would like to Show Work for this question: Open Show Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing That Matters

Authors: Norman D Marks

1st Edition

1537662023, 978-1537662022

More Books

Students also viewed these Accounting questions