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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 (1) 2018 and (2) 2019? (Round answers to 0 decimal places, e.g. 2,125.) (1) 2018 (2) 2019 Depreciation expense

If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 2019? (Round answers to 0 decimal places, e.g. 2,125.) (1) 2018 (2) 2019 Depreciation expense

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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Use the given information to get the answer for problem (b).
In recent years, Concord Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreclation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows. Salvage Value Useful Life in Years Depreciation Method Bus Acquired Cost 1 1/1/18 $ 96,000 $ 6,500 Straight-line 1/1/18 128,000 11,000 Declining-balance 4 3 1/1/19 95,100 9,000 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 123,000. Actual miles of use in the first 3 years were 2019, 25,000; 2020, 31,000; and 2021, 32,500. v (al) 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 0.70 per mile Click if you would like to Show Work for this question: Open Show Work SHOW SOLUuTION LINK TO TEXT Attempts: 3 of 5 used v (a2) Your answer is correct. Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 53,700 BUS 2 112,000 BUS 3 39,200 Click if you would like to Show Work for this question: Open Show Work
Transcribed Image Text:In recent years, Concord Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreclation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows. Salvage Value Useful Life in Years Depreciation Method Bus Acquired Cost 1 1/1/18 $ 96,000 $ 6,500 Straight-line 1/1/18 128,000 11,000 Declining-balance 4 3 1/1/19 95,100 9,000 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 123,000. Actual miles of use in the first 3 years were 2019, 25,000; 2020, 31,000; and 2021, 32,500. v (al) 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 0.70 per mile Click if you would like to Show Work for this question: Open Show Work SHOW SOLUuTION LINK TO TEXT Attempts: 3 of 5 used v (a2) Your answer is correct. Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 53,700 BUS 2 112,000 BUS 3 39,200 Click if you would like to Show Work for this question: Open Show Work
v (b) If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 2019? (Round answers to 0 decimal places, e.g. 2,125.) (1) 2018 (2) 2019 Depreciation expense
Transcribed Image Text:v (b) If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 2019? (Round answers to 0 decimal places, e.g. 2,125.) (1) 2018 (2) 2019 Depreciation expense
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