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Problem 10 2A In recent years Avery Transportation purchased three used buses Because of frequent turnover in the accounting department a different accountant selected the depreciation method for

Problem 10-2A

In recent years, Avery 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 summarized as follows.
Bus   Acquired   Cost   Salvage
Value
  Useful Life
in Years
  Depreciation
Method
1   1/1/12   $ 97,900   $ 7,500   5   Straight-line
2   1/1/12   128,000   11,900   5   Declining-balance
3   1/1/13   81,660   9,000   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 121,100. Actual miles of use in the first 3 years were: 2013, 26,000; 2014, 33,800; and 2015, 30,400.

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For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. $0.50.)
Depreciation expense per mile   $Entry field with incorrect answer now contains modified data.60 per mile

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Compute the amount of accumulated depreciation on each bus at December 31, 2014. (Round answers to 0 decimal places, e.g. $2,125.)
    2014
BUS 1   $Entry field with incorrect answer13560
BUS 2   $Entry field with incorrect answer62464
BUS 3   $Entry field with incorrect answer235820

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If bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in 2012 and 2013? (Round answers to 0 decimal places, e.g. $2,125.)
    2012   2013
Depreciation expense   $Entry field with incorrect answer19200   $Entry field with incorrect answer

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May 21 2020 View more View Less

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