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In recent years, Ayayai Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Salvage Bus Acquired Cost Value Useful Life in Years Depreciation Method 1 Jan. 1, 2025 $95,600 $6,000 5 Straight-line 2 Jan. 1, 2025 125,000 10,500 4 Declining-balance 3 Jan. 1, 2026 90,600 8,000 4 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 118,000. Actual miles of use in the first 3 years were 2026,27,500; 2027,36,000; and 2028, 33,000. (a1) 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 (a2) Compute the amount of accumulated depreciation on each bus at December 31, 2027. (b) BUS 1 $ BUS 2 $ BUS 3 $ Accumulated depreciation eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2025 and (2) 2026? (Round answers to O decimal places, e.g. 5,275.) (1) 2025 Depreciation expense $ $ (2) 2026

In recent years, Ayayai Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Salvage Bus Acquired Cost Value Useful Life in Years Depreciation Method 1 Jan. 1, 2025 $95,600 $6,000 5 Straight-line 2 Jan. 1, 2025 125,000 10,500 4 Declining-balance 3 Jan. 1, 2026 90,600 8,000 4 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 118,000. Actual miles of use in the first 3 years were 2026,27,500; 2027,36,000; and 2028, 33,000. (a1) 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 (a2) Compute the amount of accumulated depreciation on each bus at December 31, 2027. (b) BUS 1 $ BUS 2 $ BUS 3 $ Accumulated depreciation eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2025 and (2) 2026? (Round answers to O decimal places, e.g. 5,275.) (1) 2025 Depreciation expense $ $ (2) 2026

Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
Problem 1AFE
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In recent years, Ayayai Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Salvage Bus Acquired Cost Value Useful Life in Years Depreciation Method 1 Jan. 1, 2025 $95,600 $6,000 5 Straight-line 2 Jan. 1, 2025 125,000 10,500 4 Declining-balance 3 Jan. 1, 2026 90,600 8,000 4 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 118,000. Actual miles of use in the first 3 years were 2026,27,500; 2027,36,000; and 2028, 33,000. (a1) 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
Transcribed Image Text:In recent years, Ayayai Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Salvage Bus Acquired Cost Value Useful Life in Years Depreciation Method 1 Jan. 1, 2025 $95,600 $6,000 5 Straight-line 2 Jan. 1, 2025 125,000 10,500 4 Declining-balance 3 Jan. 1, 2026 90,600 8,000 4 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 118,000. Actual miles of use in the first 3 years were 2026,27,500; 2027,36,000; and 2028, 33,000. (a1) 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
(a2) Compute the amount of accumulated depreciation on each bus at December 31, 2027. (b) BUS 1 $ BUS 2 $ BUS 3 $ Accumulated depreciation eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2025 and (2) 2026? (Round answers to O decimal places, e.g. 5,275.) (1) 2025 Depreciation expense $ $ (2) 2026
Transcribed Image Text:(a2) Compute the amount of accumulated depreciation on each bus at December 31, 2027. (b) BUS 1 $ BUS 2 $ BUS 3 $ Accumulated depreciation eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2025 and (2) 2026? (Round answers to O decimal places, e.g. 5,275.) (1) 2025 Depreciation expense $ $ (2) 2026
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