In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department,
Question:
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 2013, 24,000; 2014, 34,000; and 2015, 30,000.
Instructions
(a) Compute the amount of accumulated depreciation on each bus at December 31, 2014.
(b) If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2012 and (2)2013?
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Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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