Problem 9-2A 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.

Bus Acquired Cost Salvage Value Useful Life in Years Depreciation Method

1 1/1/15 $ 98,300 $ 7,000 5 Straight-line

2 1/1/15 118,000 10,000 4 Declining-balance

3 1/1/16 88,640 8,000 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 2016, 24,000; 2017, 31,500; and 2018, 30,000.

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 $________ per mile

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, e.g. 2,125.)

Accumulated depreciation

BUS 1 $ ________

BUS 2 $ ________

BUS 3 $ ________

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.)

(1) 2015 (2) 2016

Depreciation expense $_____ $_____