In recent years, juresic transportation purchased three used buses. Bus Acquired
ID: 2387606 • Letter: I
Question
In recent years, juresic transportation purchased three used buses.Bus Acquired Cost Salvage Value Useful life/yrs Depreciation Method
1 1/1/08 $96,000 $6,000 5 straight-line
2 1/1/08 $120,000 $10,000 4 declining-balance
3 1/1/09 $80,000 $8,000 5 units-of-activity
for declining-balance method, the company uses the double 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: 2009, 24,000: 2010, 34,000; and 2011, 30,000
Compute the amount of accumulated depreciation on each bus at December 31, 2010.
Bus 1 $__________
Bus 2 $___________
Bus 3_____________
If bus no. 2 was purchased on April 1 instead of Jan 1, what is the depreciation expense for this bus in 2008 and (2) 2009?
Explanation / Answer
I hope my chart is readable, it looked much better in Mircosoft word. Best of Luck In recent years, juresic transportation purchased three used buses. Bus Acquired Cost Salvage Value Useful life/yrs Depreciation Method 1) 1/1/08 $96,000 $6,000 5 straight-line 2) 1/1/08 $120,000 $10,000 4 declining-balance 3) 1/1/09 $80,000 $8,000 5 units-of-activity for declining-balance method, the company uses the double 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: 2009, 24,000: 2010, 34,000; and 2011, 30,000 Compute the amount of accumulated depreciation on each bus at December 31, 2010. BUS# 2008 2009 2010 2011 2012 Residual 1 18,000 18,000 18,000 18,000 18,000 6,000 End of year 36,000 54,000 2 60,000 30,000 15,000 5,000 10,000 End of year 105,000 3 -0- 14,400 20,400 18,000 8,000 End of year 34,800 $.60 per mile If bus no. 2 was purchased on April 1 instead of Jan 1, what is the depreciation expense for this bus in 2008 and (2) 2009? 2008: 45,000 2009: 37,500
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