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Problem 9-2A (Part Level Submission) In recent years, Pina Colada Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different
Problem 9-2A (Part Level Submission) In recent years, Pina Colada 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. Bus Useful Life in Years Acquired 1/1/17 1/1/17 1/1/18 + Salvage Value $5,500 10,000 9,000 Cost $ 100,000 113,000 81,600 Depreciation Method Straight-line Declining-balance Units-of-activity 2 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 110,000. Actual miles of use in the first 3 years were 2018, 27,000; 2019, 35,000; and 2020, 30,000. (al) Your answer is correct. 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 .66 per mile (a2) 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 0 decimal places, e.g. 2,125.) Accumulated depreciation 70875 BUS 1 BUS 2 BUS 3 LINK TO TEXT VIDEO: SIMILAR PROBLEM *(b) 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 o decimal places, e.g. 2,125.) (1) 2015 (2) 2016 Depreciation expenses
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