### Create an Account

Home / Questions / Problem 10 2A In recent years Avery Transportation purchased three used buses Because of f...

# 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 SalvageValue Useful Lifein Years DepreciationMethod 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.

Warning

 Don't show me this message again for the assignment
Ok Cancel
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 \$.60 per mile

Warning

 Don't show me this message again for the assignment
Ok Cancel
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 \$13560 BUS 2 \$62464 BUS 3 \$235820

Warning

 Don't show me this message again for the assignment
Ok Cancel
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 \$19200 \$

Warning

 Don't show me this message again for the assignment
Ok Cancel

 Click if you would like to Show Work for this question: Open Show WorkModify Show Work

 Question Attempts: 1 of 5 used Save for later Submit Answer