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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb788abcd-eef5-4f27-84e3-02815d880ffa%2Fb85ba6a4-5678-43b1-ac14-2a7a1603b1ba%2Flnwtwxr_processed.png&w=3840&q=75)
Transcribed Image Text:Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round answers to0 decimal places, e.g.
2,125.)
Accumulated depreciation
BUS 1
2$
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb788abcd-eef5-4f27-84e3-02815d880ffa%2Fb85ba6a4-5678-43b1-ac14-2a7a1603b1ba%2Fqr5yk55_processed.png&w=3840&q=75)
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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