In recent years, Pina Transportation purchased three used buses. Because of frequent turnover in the...
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Accounting
In recent years, Pina 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 below. Bus Acquired Cost Residual Value Useful Life in Years Depreciation Method 1 1/1/18 96,100 7,000 4 Straight-line 2 1/1/18 119,000 11,000 5 Declining-balance 3 1/1/19 95,000 7,500 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 125,000. Actual miles of use in the first 3 years were: 2019, 25,500; 2020, 34,500; and 2021, 30,000. Compute the amount of accumulated depreciation on each bus at December 31, 2020. Accumulated Depreciation at December 31, 2020 BUS 1 66825 BUS 2 110984 BUS 3 42000 X Your answer is incorrect. If Bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in 2018 and 2019? (Round answers to O decimal places, e.g. 2,125.) 2018 2019 Depreciation expense 115430 46172
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