please help. In recent years, Juresic Transportation purchased three used buses.

Question

please help.

In recent years, Juresic 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.

For the declining-balance method, the company uses the double-declining rate. For the units-of activity method, total miles are expected to be 126,400. Actual miles of use in the first 3 years were: 2010, 24,300; 2011, 35,100; and 2012, 31,500.

Compute the amount of accumulated depreciation on each bus at December 31, 2011.

If bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2009 and (2) 2010?

Bus Acquired Cost Salvage
Value Useful Life
in Years Depreciation Method 1 1/1/09 $97,500 $7,600 4 Straight-line 2 1/1/09 132,000 10,600 5 Declining-balance 3 1/1/10 80,548 8,500 4 Units-of-activity

Explanation / Answer

(a)
Year ...... ........Computation .........Accumulated Depreciation
Bus 1
2010 $89,500 x 20 % = $17,900 ........$17,900
2011 $89,500 x 20 % = $17,900 ........$35,800
2012 $89,500 x 20 % = $17,900 ........$53,700
Bus 2
2010 $191,000 x 50% = $95,500 ....... $95,500
2011 $95,500 x 50% = $47,750 .........$143,250
2012 $47,750 x 50% = $23,875 ..........$167,125
Bus 3
2011 $ 23,300 x 69%* = $16,077 ........$16,077
2012 $35,600 x 69% = $24,564 ..........$40,641

*($95,219 - 8,900) / 125,100 = 69%

(b)
Year ........Computation ............. ........Expenses
Bus 2
2010 $191,000 x 50% x 9/12 = $71,625 ..$71,625
2011 $119,375** x 50% = $59,688 ..........$59,688

**71,627 + 47,750 = $119,375

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