50.1K

Verified Solution

Link Copied!

In recent years, Flint Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used Information concerning the buses is summarized in the table below. Salvage Value Useful Life in Years Bus Depreciation Method Acquired Cost Jan. 1.2020 $ 99,500 $ 7.000 5 Straight-line 2 Jan. 1.2020 112000 10.500 5 Declining-balance 3 Jan 1.2021 92.700 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 121000. Actual miles of use in the first 3 years were 2021. 24,500: 2022, 35,000 and 2023 31 500 For Bus#3 calculate depreciation expense per mile under units of activity method. Round Depreciation expense 5 per mile Textbook and Media Compute the amount of accumulated depreciation on each bus at December 31, 2022. Accumulated depreciation BUS 1 $ BUS 2 $ BUS 3 $ e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (b) If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2020 and (2) 2021? (1) 2020 (2) 2021 Depreciation expense $ $ e Textbook and Media Save for Luter Attempts: 0 of Sused Sunt A

Answer & Explanation Solved by verified expert

See Answer