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Problem 9-2A (Part Level Submission) In recent years, Splish Brothers Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different
Problem 9-2A (Part Level Submission) In recent years, Splish Brothers 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. Salvage Value Useful Life in Years Depreciation Method Bus Cost 1 4 Acquired 1/1/17 1/1/17 1/1/18 2 $ 99,000 124,000 78,300 $ 5,500 11,000 7,500 5 Straight-line Declining-balance Units-of-activity 3 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, 24,500; 2019, 31,000; and 2020, 32,500. (b) * 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) 2017 and (2) 2018? (Round answers to 0 decimal places, e.g. 2,125.) (1) 2017 (2) 2018 Depreciation expense
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