In recent years, Avery Transportation purchased three used buses
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In recent years, Avery 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 Useful Life Depreciation
Bus Acquired Cost Value in Years Method
1 1/1/15 $ 96,200 $ 7,000 5 Straight-line
2 1/1/15 111,000 12,000 5 Declining-balance
3 1/1/16 88,000 7,500 5 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 115,000. Actual miles of use in the first 3 years were 2016, 26,000; 2017, 35,000; and 2018, 29,000.
Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)
Compute the amount of accumulated depreciation on each bus at December 31, 2017. (Round answers to O decimal places, e.g. 2,125.)
[Solved] In recent years, Avery Transportation purchased three used buses
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- Submitted On 06 Jun, 2017 04:14:47
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