Question: Crane Arrow Ltd . purchased a new bus on October 1 , 2 0 2 4 , at a total cost of $ 2 0
Crane Arrow Ltd purchased a new bus on October at a total cost of $ Management is considering the merits of using
the diminishingbalance or unitsofproduction methods of depreciation instead of the straightline method, which it currently uses
for its other buses. The new bus has an estimated residual value of $ and an estimated useful life of either four years or
Use of the bus will be sporadic so it could be much higher in some years than in others. Assume the new bus is driven as
follows: in ; km in ; in ; in ; and km in Crane Arrow has an
October year end.
a
Your answer is incorrect.
Prepare separate depreciation schedules for the life of the bus using: Round depreciation per unit to decimal places, eg and
final answers to decimal places, eg
Straightline method:
double diminishing balance method
units of production method
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