Financial Accounting: P10-2A In recent years, Juresic Transportation purchased three used buses

Financial Accounting
P10-2A
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.
Bus Acquired Cost Salvage Value Useful life in years Depreciation Method
1 1/1/2006 96,000 6,000 5 Straight-line
2 1/1/2006 120,000 10,000 4 Declining-balance
3 1/1/2007 80,000 8,000 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 120,000. Actual miles of use in the first 3 years were: 2007, 24,000; 2008, 34,000; and 2009, 30,000.

Required:
a. Compute the amount of accumulated depreciation on each bus at December 31, 2008. (Round unit depreciation cost per mile to 2 decimal places. Round final answers to 0 decimal places.)
b. If bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2006 and (2) 2007?
Powered by