In recent years, Blue Spruce 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.SalvageUseful LifeDepreciationBusAcquiredCostValuein YearsMethod1Jan. 1, 2020$ 95,600$ 8,0004Straight-line2Jan. 1, 2020119,00012,000Declining-balance3Jan. 1, 202191,3008,000Units-of-activityFor the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles areexpected to be 119,000. Actual miles of use in the first 3 years were 2021, 28,000; 2022, 35,000; and 2023, 31,000.(a1)For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. O.50.)Depreciation expenseper mile%24

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Description: In recent years, Blue Spruce 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 u

Depreciation expense per mile = (Cost - Salvage value)/Total expected miles

Business

Accounting

In recent years, Blue Spruce 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 Useful Life Depreciation Bus Acquired Cost Value in Years Method 1 Jan. 1, 2020 $95,600 $ 8,000 4 Straight-line 2 Jan. 1, 2020 119,000 12,000 5 Declining-balance 3 Jan. 1, 2021 91,300 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 119,000. Actual miles of use in the first 3 years were 2021, 28,000; 2022, 35,000; and 2023, 31,000. (a1) For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. O.50.) Depreciation expense $ per mile

In recent years, Blue Spruce 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 Useful Life Depreciation Bus Acquired Cost Value in Years Method 1 Jan. 1, 2020 $95,600 $ 8,000 4 Straight-line 2 Jan. 1, 2020 119,000 12,000 5 Declining-balance 3 Jan. 1, 2021 91,300 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 119,000. Actual miles of use in the first 3 years were 2021, 28,000; 2022, 35,000; and 2023, 31,000. (a1) For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. O.50.) Depreciation expense $ per mile

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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