Question: How would I solve this problem? (b) If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for

How would I solve this problem?

How would I solve this problem? (b) If Bus 2 was purchasedon April 1 instead of January 1, what is the depreciation expense

(b) If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 2019? (Round answers to 0 decimal places, e.g. 2,125.) (1) (2) 2018 2019 Depreciation expenseIn recent years, Oriole 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. Information concerning the buses is shown as follows. Salvage Useful Life Depreciation Bus Acquired Cost Value in Years Method 1/1/18 $ 95.200 $ 6.500 4 Straight-line 2 1/1/18 124.000 11,000 4 Declining-balance 3 1/1/19 89.140 8.500 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 126.000. Actual miles of use in the first 3 years were 2019. 24,000: 2020. 33,000; and 2021, 29.000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!