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Samsung Company purchased a bus in cash on January 1, 2019 with the following information: a) Purchase price: $..... b) Attorney's fee: $.... c) Freight
Samsung Company purchased a bus in cash on January 1, 2019 with the following information: a) Purchase price: $..... b) Attorney's fee: $.... c) Freight in: $.... The bus has its expected useful life of 10 years with expected miles to be driven of 180,000. The bus can be sold for $2,100 after 10 years of usage. Actual miles driven were 22,000 in 2019 and 21,000 in 2020. Required: 1. Fill the dot (...) with a reasonable amount for given transactions above. (0.5 marks). 2. Prepare journal entry for the transaction on January 1, 2019.(0.25 marks) 3. Compute depreciation expense for 2019 and 2020 using (a) the straight-line method. (b) units of activity method, and (c) the double reducing balance method. (0.25 marks) 4. Which depreciation method do you prefer? Why? (0.5 marks)
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