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 shown as follows. Salvage Useful Life Depreciation Method Bus Acquired Cost Value in Years Straight-line Declining-balance Units-of-activity $ 96,000 $ 6,000 1/1/17 1/1/17 4 110,000 10.000 3 1/1/18 92,000 8,000 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 120,000. Actual miles of use in the first 3 years were 2018, 24,000; 2019, 34,000; and 2020, 30,000. For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost $ per mile Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per unit to 2 decimal places, e.g. O.50 and depreciation rate to O decimal places, e.g. 15%. Round final answers to O decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 $ BUS 2 $ BUS 3 $ eTextbook and Media If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 2018? (Round answers to 0 decimal places, e.g. 2,125.) (1) (2) 2017 2018 Depreciation expense eTextbook and Media

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Description: 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 concerni

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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 shown as follows.

Bus	Acquired	Cost	Salvage Value	Useful Life in Years	Depreciation Method
1	1/1/17	$ 96,000	$ 6,000	5	Straight-line
2	1/1/17	110,000	10,000	4	Declining-balance
3	1/1/18	92,000	8,000	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 120,000. Actual miles of use in the first 3 years were 2018, 24,000; 2019, 34,000; and 2020, 30,000.

For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciable cost

per mil

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 shown as follows.
Salvage Useful Life
Depreciation
Method
Bus Acquired
Cost
Value
in Years
Straight-line
Declining-balance
Units-of-activity
$ 96,000 $ 6,000
1/1/17
1/1/17
4
110,000
10.000
3
1/1/18
92,000
8,000
For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 120,000.
Actual miles of use in the first 3 years were 2018, 24,000; 2019, 34,000; and 2020, 30,000.
For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)
Depreciable cost $
per mile

Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per unit to 2 decimal places, e.g. O.50 and
depreciation rate to O decimal places, e.g. 15%. Round final answers to O decimal places, e.g. 2,125.)
Accumulated depreciation
BUS 1 $
BUS 2 $
BUS 3 $
eTextbook and Media
If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 2018? (Round answers to 0 decimal
places, e.g. 2,125.)
(1)
(2)
2017
2018
Depreciation expense
eTextbook and Media

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