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Compute the amount of accumulated depreciation on each bus at December 31, 2020. (I

Compute the amount of accumulated depreciation on each bus at December 31, 2020. (I

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round answers to0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 2$ BUS 2 $ BUS 3 $
Transcribed Image Text:Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round answers to0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 2$ BUS 2 $ BUS 3 $
In recent years, Sheffield 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. Salvage Useful Life Depreciation Bus Acquired Cost Value in Years Method 1 1/1/18 $ 98,900 $7,500 5 Straight-line 2 1/1/18 128,000 12,000 4 Declining-balance 3 1/1/19 95,000 7,500 5 Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 125,000. Actual miles of use in the first 3 years were 2019, 27,000; 2020, 35,000; and 2021, 33,000. (a1) Your answer is correct. For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense 2$ 0.70 per mile
Transcribed Image Text:In recent years, Sheffield 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. Salvage Useful Life Depreciation Bus Acquired Cost Value in Years Method 1 1/1/18 $ 98,900 $7,500 5 Straight-line 2 1/1/18 128,000 12,000 4 Declining-balance 3 1/1/19 95,000 7,500 5 Units-of-activity For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 125,000. Actual miles of use in the first 3 years were 2019, 27,000; 2020, 35,000; and 2021, 33,000. (a1) Your answer is correct. For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense 2$ 0.70 per mile
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