Question: Please help me correct the wrong answers. In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a
In recent years, Avery 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 summarized as follows Useful Life in Years Salvage Bus Acquired Value Method Cost $96,300 124,000 7,000 10,500 8,500 Straight-line Declining-balance Units-of-activity 87,380 For the declining-balance method, the company uses the double-declining rate. For the units-of- activity method, total miles are expected to be 116,000. Actual miles of use in the first 3 years were 2016, 25,000; 2017, 31,000; and 2018, 31,000. Your answer is correct. For Bus #3 , calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense 0.68 per mile Your answer is incorrect. Try again. Compute the amount of accumulated depreciation on each bus at December 31, 2017. (Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, eg. 2,125.) ccumulated de BUS 1 17860 BUS 2 35720 BUS 3 3580 Your answer is incorrect. Try again. If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2015 and (2) 2016? (Round answers to 0 decimal places, e.g. 2,125.) Depreciation expense 37200 71920
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
