Two different Questions, please all in full. P10-2A In recent years, Juresic 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. Bus Acquired Cost Salvage Value Useful Life in Years Depreciation Method 1 1/1/06 $96,000 $6,000 5 Straight-line 2 1/1/06 120,000 10,000 4 Declining-balance 3 1/1/07 80,000 8,000 5 Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the units-of activity method, total miles are expected to be 120,000. Actual miles of use in the first 3 years were: 2007, 24,000; 2008, 34,000; and 2009, 30,000. Compute the amount of accumulated depreciation on each bus at December 31, 2008. Bus 1 $ Bus 2 $ Bus 3 $ If bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2006 and (2) 2007? 2006 $ 2007 $ P10-3A On January 1, 2008, Pele Company purchased the following two machines for use in its production process. Machine A The cash price of this machine was $38,000. Related expenditures included: sales tax $1,700, shipping costs $150, insurance during shipping $80, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Pele estimates that the useful life of the machine is 5 years with a $5,000 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. Machine B The recorded cost of this machine was $160,000. Pele estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. Prepare the following for Machine A. 1. The journal entry to record its purchase on January 1, 2008. 2. The journal entry to record annual depreciation at December 31, 2008. Account / Description Debit Credit 1. $ $ 2. $ $ Calculate the amount of depreciation expense that should record for machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places. Round final answers to 0 decimal places, e.g. 125.) 1. Pele uses the straight-line method of depreciation. 2. Pele uses the declining-balance method. The rate used is twice the straight-line rate. 3. Pele uses the units-of-activity method and estimates that the useful life of the machine is 125,000 units. Actual usage is as follows: 2008, 45,000 units; 2009, 35,000 units; 2010, 25,000 units; 2011, 20,000 units. Year 1 Year 2 Year 3 Year 4 1. Straight-line $ $ $ $ 2. Declining-balance $ $ $ $ 3. Units-of-activity $ $ $ $ Which method used to calculate depreciation on machine B reports the highest amount of depreciation expense in year 1 (2008)? The highest amount in year 4 (2011)? The highest total amount over the 4-year period?