In recent years, Culver 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. Bus 1 2 3 Acquired Jan. 1, 2020 Jan. 1, 2020 Jan. 1, 2021 Cost $98,900 120,000 90,800 Salvage Value $5,000 11,500 7,500 Useful Life in Years 5 5 4 Depreciation Method Straight-line Declining-balance 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, 26,500; 2022, 32,000; and 2023, 29,000.

In recent years, Culver 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. Bus 1 2 3 Acquired Jan. 1, 2020 Jan. 1, 2020 Jan. 1, 2021 Cost $98,900 120,000 90,800 Salvage Value $5,000 11,500 7,500 Useful Life in Years 5 5 4 Depreciation Method Straight-line Declining-balance 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, 26,500; 2022, 32,000; and 2023, 29,000.

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Description: In recent years, Culver Transportation purchased three used buses. Because of frequent turnover in the accounting department, adifferent accountant was in charge of selecting the depreciation method for each bus, and various methods have been used.I

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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