please ion 1 1 recent years, Metlock Transportation purchased three used buses.
ID: 2524481 • Letter: P
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please
ion 1 1 recent years, Metlock Transportation purchased three used buses. Because of frequent turnover in the accounti for each bus, and various methods were selected. Information concerning the buses is shown as follews SalvageUseful Life Depreciation Method Bus Acquired Value Cost $ 99,500 5.500 115,000 11,000 tudy in Years 5Straight-line 2 Declining-balance Units-of-activity 84,300 7,500 For the declining-balance method, the companty uses the do first 3 years were 2018, 28,000; 2019, 34,000; and 2020, 31.500. For Bus 3, calculate deprecation expense per mile under units-of-activity method. (Round ansiwer to 2 decinalp Depreciation expense per mile LINK TO TEXT VIDEO SIMELAR PROBCEN Compute the amount of accumulated deprecation on each bus at December 31, 2019. (Round depreciation rate to 0 decimal places, e.g. 159%. Round final answers to o decimal places, e.g. 2125) Accumulated depreciationExplanation / Answer
BUS-3, Depreciation Expense per mile
Depreciation Expense per mile = (Cost – Salvage Value) / Actual Total Miles
= ($84300 - $7500 ) /128000 Miles
= $ 0.60 per mile
Accumulated Depreciation of Each Bus at December 31,2019
BUS 1==$56,400
BUS 2 = $90,160
BUS 3 = $37,200
BUS 1
Straight Line Depreciation = ( Cost of the asset – Salvage Value ) / Usefull Life
= ($99500 - $5500) /5 Years
= $18800 per year
Accumulated Depreciation at December 31,2019 = $18800 x 3 Years =$56,400
BUS 2
Year
Book Value at the beginning
Depreciation Rate
Annual Depreciation
Accumulated Depreciation
Book Value at the end
2017
115000
0.40
46000
46000
69000
2018
69000
0.40
27600
73600
41400
2019
41400
0.40
16560
90160
24840
Depreciation Rate =2x 1/5 = 0.40
Accumulated Depreciation at December 31,2019 = $90,160
BUS 3
Depreciation for 2018 = $28,000 Miles x $0.60 per mile = $16,800
Depreciation for 2019 = $34000 Miles x $0.60 per mile = $20,400
Accumulated Depreciation at December 31,2019 = $16800+$20400=$37,200
If Bus 3 was purchased on April 1 instead of January 1, Depreciation will be
Depreciation for 2017 = $46000 * 9/12 = $34,500 (For 9 Months)
Depreciation for 2018 = $27,600
Year
Book Value at the beginning
Depreciation Rate
Annual Depreciation
Accumulated Depreciation
Book Value at the end
2017
115000
0.40
46000
46000
69000
2018
69000
0.40
27600
73600
41400
2019
41400
0.40
16560
90160
24840
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