King Manufacturing Company purchased a bus on January 1, 2016 at a cost of $125,000. The bus is expected to be driven 150,000 miles over its 4 years useful life. Salvage value is expected to be $5,000. The company uses the Units of Activity Method of depreciation and prepares its financial statements annually. Actual mileage during Year 2016 was 40,000 miles; Year 2017 was 45,000 miles; Year 2019 was 30,000 miles.
King Manufacturing Company purchased a bus on January 1, 2016 at a cost of $125,000. The bus is expected to be driven 150,000 miles over its 4 years useful life. Salvage value is expected to be $5,000. The company uses the Units of Activity Method of depreciation and prepares its financial statements annually. Actual mileage during Year 2016 was 40,000 miles; Year 2017 was 45,000 miles; Year 2019 was 30,000 miles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![King Manufacturing Company purchased a bus on January 1, 2016 at a cost of
$125,000. The bus is expected to be driven 150,000 miles over its 4 years
useful life. Salvage value is expected to be $5,000. The company uses the
Units of Activity Method of depreciation and prepares its financial statements
annually. Actual mileage during Year 2016 was 40,000 miles; Year 2017 was
45,000 miles; Year 2019 was 30,000 miles.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f1b7902-8cc9-423d-b6da-5d840d3fcdba%2Fa9015460-a141-4ad1-9ec6-8856833e5bd6%2F7ykdlyr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:King Manufacturing Company purchased a bus on January 1, 2016 at a cost of
$125,000. The bus is expected to be driven 150,000 miles over its 4 years
useful life. Salvage value is expected to be $5,000. The company uses the
Units of Activity Method of depreciation and prepares its financial statements
annually. Actual mileage during Year 2016 was 40,000 miles; Year 2017 was
45,000 miles; Year 2019 was 30,000 miles.
![The accumulated depreciation on December 31, 2017 is: *
$32,000
$68,000
$36,000
$24,000
None of the above.
The depreciation expense recorded on December 31, 2018 is:
$28,000
$96,000
O $120,000
$24,000
None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f1b7902-8cc9-423d-b6da-5d840d3fcdba%2Fa9015460-a141-4ad1-9ec6-8856833e5bd6%2Fxpugt2r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The accumulated depreciation on December 31, 2017 is: *
$32,000
$68,000
$36,000
$24,000
None of the above.
The depreciation expense recorded on December 31, 2018 is:
$28,000
$96,000
O $120,000
$24,000
None of the above
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