Problem 9-2A In recent years, Metlock 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 shown as follows. Salvage Value Useful Life in Years Depreciation Method Bus Acquired Cost 1/1/17 $ 99,500 $ 5,500 Straight-line 1/1/17 115,000 11,000 5 Declining-balance 1/1/18 84,300 7,500 4 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 128,000. Actual miles of use in the first 3 years were 2018, 28,000; 2019, 34,000; and 2020, 31,500. For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost per mile LINK TO TEXT VIDEO: SIMILAR PROBLEM Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 BUS 2 BUS 3 LINK TO TEXT VIDEO: SIMILAR PROBLEM If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 2018? (Round answers to 0 decimal places, e.g. 2,125.) (1) (2) 2018 2017 Depreciation expense Click if you would like to Show Work for this question: Open Show Work %24
Problem 9-2A In recent years, Metlock 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 shown as follows. Salvage Value Useful Life in Years Depreciation Method Bus Acquired Cost 1/1/17 $ 99,500 $ 5,500 Straight-line 1/1/17 115,000 11,000 5 Declining-balance 1/1/18 84,300 7,500 4 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 128,000. Actual miles of use in the first 3 years were 2018, 28,000; 2019, 34,000; and 2020, 31,500. For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost per mile LINK TO TEXT VIDEO: SIMILAR PROBLEM Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 BUS 2 BUS 3 LINK TO TEXT VIDEO: SIMILAR PROBLEM If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 2018? (Round answers to 0 decimal places, e.g. 2,125.) (1) (2) 2018 2017 Depreciation expense Click if you would like to Show Work for this question: Open Show Work %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Problem 9-2A
In recent years, Metlock 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 shown as follows.
Salvage
Value
Useful Life
in Years
Depreciation
Method
Bus
Acquired
Cost
1/1/17
$ 99,500
$ 5,500
Straight-line
1/1/17
115,000
11,000
5
Declining-balance
1/1/18
84,300
7,500
4
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 128,000. Actual miles of use in the first 3 years were 2018, 28,000; 2019, 34,000; and
2020, 31,500.
For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places,
e.g. 0.50.)
Depreciable cost
per mile
LINK TO TEXT
VIDEO: SIMILAR PROBLEM
Transcribed Image Text:Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per
unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers
to 0 decimal places, e.g. 2,125.)
Accumulated depreciation
BUS 1
BUS 2
BUS 3
LINK TO TEXT
VIDEO: SIMILAR PROBLEM
If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2)
2018? (Round answers to 0 decimal places, e.g. 2,125.)
(1)
(2)
2018
2017
Depreciation expense
Click if you would like to Show Work for this question: Open Show Work
%24
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