In recent years, Concord Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and varlous methods were selected. Information concerning the buses is summarized as follows. Useful Life in Years Salvage Depreciation Method Bus Acquired Cost Value 1 1/1/18 $ 96,000 $ 6,500 Straight-line 1/1/18 128,000 11,000 Declining-balance Units-of-activity 3 1/1/19 95,100 9.000 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 123.000. Actual miles of use in the first 3 years were 2019, 25,000; 2020, 31,000; and 2021, 32,500. v (al) X Your answer is incorrect. Try again. 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
In recent years, Concord Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and varlous methods were selected. Information concerning the buses is summarized as follows. Useful Life in Years Salvage Depreciation Method Bus Acquired Cost Value 1 1/1/18 $ 96,000 $ 6,500 Straight-line 1/1/18 128,000 11,000 Declining-balance Units-of-activity 3 1/1/19 95,100 9.000 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 123.000. Actual miles of use in the first 3 years were 2019, 25,000; 2020, 31,000; and 2021, 32,500. v (al) X Your answer is incorrect. Try again. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For Bus #3 calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)
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