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Salvage In recent years, Marigold Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method
Salvage In recent years, Marigold 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 Depreciation Bus Acquired Cost Value in Years Method 1/1/17 $ 99,400 $ 7,000 Straight-line 1/1/17 124,000 10,500 Declining balance 1/1/18 89,140 8,500 4 Units-of-activity 2 For the declining-balance method, the company uses the double-declining rate. For the units -activity method, total miles are expected to be 126,000. Actual miles of use in the first 3 years were 2018, 23,500; 2019, 36,000, and 2020, 32,500. Compute the amount of accumulated depreciation on each bus at December 31, 2019. 2,125.) Accumulated depreciation BUS 1 69300 BUS 2 108500 BUS 3 38080 $ 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? (2) 2018 2017 Depreciation expense 62000 31000
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