iPad 10:05 PM * 64% Problem 9-2A In recent years, Avery Transpertation purchased

Question

iPad 10:05 PM * 64% Problem 9-2A In recent years, Avery Transpertation 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 Chapter 9 Hommework Salvage Useful Life Bus Acquired Exercise 9-10 xercise 9- 96,000 6,000 10,000 10,000 92,000 8,000 For the decliningbalance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 120,000. Actual miles of use in the first 3 years were 2018, 24,000; 2019, 34,000; and 2020, 30,000. Objecthe Your answer is incorrect. Try again. For Bus 3, calculate depreciation expense per mile under unts-of-activity method (Round answer to 2 decimal places, e.g. 0.50.) per mile SIMILAR PROBLEM Your answer is incorrect. Try again Compute the amount of accumulated depreciation on each bus at December 31, 2019 (Round depreciation cost per unit to 2 decinal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to O decimal places, e-g. 2,125) BUS 1 BUS 2 BUS 3 Your answer is incorrect Try again, If Bus 2 was purchased on Apeil 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 20187 (Round answers to 0 decimal places, e.g. 2,125.) 2017 2018 Depreciation expense Question Attempts: 1 of 5 used SAVE FO LATER

Explanation / Answer

a. Depreciation expense per mile under units of activity method is:

(92,000-8,000) / 120,000 = 0.70 per mile.

b. Accumulated dep on each bus at December 31, 2019 is as shown below:

Working:

3.

Depreciation for 2017 and 2018 when Bus 2 was purchased on April 1 is as shown below:

Accumulated dep Bus 1 54,000 Bus 2 96,250 Bus 3 40,600

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