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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 shown as follows. Bus Acquired Cost Salvage Value Useful Life in Years Depreciation Method 1 1/1/17 $96,000 $6,000 5 Straight-line 2 1/1/17 110,000 10,000 4 Declining-balance 3 1/1/18 92,000 8,000 5 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 120,000. Actual miles of use in the first 3 years were 2018, 24,000; 2019, 34,000; and 2020, 30,000. Instructions (a) Compute the amount of accumulated depreciation on each bus at December 31, 2019. Bus 2, 2018, $82,500 (b) If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 2018?

P9-2ACompute depreciation under different methods LO 2) 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 shown as follows Bus Acquired Cost $ 96,000 110.000 92,000 Salvage Vle Useful Life in Years Depreciation Method S 6,000 10,000 8,000 1/1/17 Straight-line Declining-balance 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 120,000. Actual miles of use in the first 3 years were 2018, 24,000; 2019, 34,000; and 2020. 30,000 Instructions Compute the amount of accumulated depreciation on each bus at December 31, 2019 Bus 2, 2018, $82.500 (a) b) If Bus 2 was purchased on Ap instead of January 1, what is the depreciation expense for this bus in(1) 2017 and (2) 2018

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