In recent years, Rapid 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 have been selected. Information concerning the buses is summarized below:

For the declining balance method, Rapid Transportation 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: \(1995,24,000 ; 1996,34,000\); and \(1997,30,000\).
\section*{Instructions}

(a) Compute the amount of accumulated depreciation on each bus at December 31, 1996.

(b) If Bus No. 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 1994 and (2) 1995?

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Bus Acquired Cost Salvage Value in Years 123 1/1/94 1/1/94 $ 96,000 $ 6,000 5 120,000 10,000 4 1/1/95 80,000 8,000 5 Useful Life Depreciation Method Straight-line Declining-balance Units-of-activity