In recent years, Avery Transporation purchased three used buses. Because of frequent turnover in the accounting department,
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In recent years, Avery Transporation 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.
Bus | Acquired | Cost | Salvage Value | Useful Life in Years | Depreciation Method |
---|---|---|---|---|---|
1 | 1/1/12 | $95,300 | $6,500 | 4 | Straight-line |
2 | 1/1/12 | 130,000 | 12,000 | 5 | Declining-balance |
3 | 1/1/13 | 79,940 | 7,700 | 4 | 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 120,400. Actual miles of use in the first 3 years were:
2013 | 24,000 |
2014 | 32,900 |
2015 | 29,700 |
Compute the amount of accumulated depreciation on each bus at December 31, 2014.
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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