Sandhill Arrow Ltd$.$ purchased a new bus on October $1,2024,$ at a total cost of $$250,996.$ Management is considering the merits of Sandhill Arrow Ltd$.$ purchased a new bus on October $1,2024,$ at a total cost of $$250,996.$ Management is considering the merits of

using the diminishing$-$balance or units$-$of$-$production methods of depreciation instead of the straight$-$line method, which it currently

uses for its other buses. The new bus has an estimated residual value of $$25,000,$ and an estimated useful life of either four years or

$305,400km.$ Use of the bus will be sporadic so it could be much higher in some years than in others. Assume the new bus is driven as

follows: $8,700km$ in $2024$;$101,000km$ in $2025$;$63,500km$ in $2026$;$97,000km$ in $2027$ ; and $35,200km$ in $2028.$ Sandhill Arrow has an

October $31$ year end.

$($a$)$

Your answer is partially correct.

Prepare separate depreciation schedules for the life of the bus using: $($Round depreciation per unit to $2$ decimal places, e$.$g$.5\mathrm{.}28$ and

final answers to $0$ decimal places, e$.$g$.5,275.)$

$(1)$ Straight$-$line method: Prepare separate depreciation schedules for the life of the bus using: $($Round depreciation per unit to $2$ decimal places, e$.$g$.5\mathrm{.}28$ and

final answers to $0$ decimal places, e$.$g$.5,275.)$

$(1)$ Straight$-$line method: $(2)$ Double$-$diminishing$-$balance method:

using the diminishing$-$balance or units$-$of$-$production methods of depreciation instead of the straight$-$line method, which it currently

uses for its other buses. The new bus has an estimated residual value of $$25,000,$ and an estimated useful life of either four years or

$305,400km.$ Use of the bus will be sporadic so it could be much higher in some years than in others. Assume the new bus is driven as

follows: $8,700km$ in $2024$;$101,000km$ in $2025$;$63,500km$ in $2026$;$97,000km$ in $2027$ ; and $35,200km$ in $2028.$ Sandhill Arrow has an

October $31$ year end.

$($a$)$

Prepare separate depreciation schedules for the life of the bus using: $($Round depreciation per unit to $2$ decimal places, e$.$g$.5\mathrm{.}28$ and

final answers to $0$ decimal places, e$.$g$.5,275.)$

$(1)$ Straight$-$line method: Prepare separate depreciation schedules for the life of the bus using: $($Round depreciation per unit to $2$ decimal places, e$.$g$.5\mathrm{.}28$ and

final answers to $0$ decimal places, e$.$g$.5,275.)$

$(1)$ Straight$-$line method:

$(2)$ Double$-$diminishing$-$balance method: $(2)$ Double$-$diminishing$-$balance method:

$(3)$ Units$-$of$-$production method: $(3)$ Units$-$of$-$production method:

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