Problem 10-02A al-b n recent years, Swifty Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows Salvage Value Useful Life Depreciation Method Bus Acquired Cost in Years 1/1/18 $ 96.500 $ 5,000 Straight-line 1/1/18 129.000 10,000 Declining-balance 3 1/1/19 94.100 8,000 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 123,000. Actual miles of use in the first 3 years were 2019, 27,500; 2020, 35,000; and 2021, 30,000. 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 0.70 per mile Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round answers to o decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 BUS 2 BUS 3 If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 20197 (Round answers to 0 decimal places, eg. 2,125.) (1) 2018 (2) 2019 Depreciation expense
Problem 10-02A al-b n recent years, Swifty Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows Salvage Value Useful Life Depreciation Method Bus Acquired Cost in Years 1/1/18 $ 96.500 $ 5,000 Straight-line 1/1/18 129.000 10,000 Declining-balance 3 1/1/19 94.100 8,000 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 123,000. Actual miles of use in the first 3 years were 2019, 27,500; 2020, 35,000; and 2021, 30,000. 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 0.70 per mile Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round answers to o decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 BUS 2 BUS 3 If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 20197 (Round answers to 0 decimal places, eg. 2,125.) (1) 2018 (2) 2019 Depreciation expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 10-02A a1-b
In recent years, Swifty Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized as follows.
Salvage
Value
Useful Life
Depreciation
Method
Bus
Acquired
Cost
in Years
1
1/1/18
$ 96,500
$ 5,000
Straight-line
2
1/1/18
129,000
10,000
Declining-balance
Units-of-activity
3
1/1/19
94,100
8,000
5
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, 27.500: 2020, 35.000: and 2021, 30.000.
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
0.70 per mile
Compute the amount of accumulated depreciation on each bus at December 31, 2020. (Round answers to 0 decimal places, e.g. 2,125.)
Accumulated depreciation
BUS 1
BUS 3
If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 2019? (Round answers to 0 decimal places, e.g. 2,125.)
(1)
2018
(2)
2019
Depreciation expense
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