Problem 9-2A (Part Level Submisslon) n recent years, Avery Transpertation for ea

Question

Problem 9-2A (Part Level Submisslon) n recent years, Avery Transpertation for each bus, and various methods were selected. I"formation concerning th, boss surnmatred "de purchased three used bine. necausedino ith min wii itmiini..lil-m A (Part vage Useful Life Value A (Part Bus Acquired Cost Depreclation 98,600 B,000 128,00010,500 78,180 7,500 traight Ine Declining balance Units ol acivity For the unts of activity method,uated to 110 .2 3 years were 2016, 26,500; 2017, 36,000; and 2018, 33,000 (al) E] Your answer is correct. For Bus #3, calculate depreciation expense per mile under units Depreciation expense 12 activity n ethod (mmind answer to ,decima,alite, eo o so) ssion) 0.62 per mile s by Study INK TO X ll Rights sReserved A Divison of Next

Explanation / Answer

Solution:-

For Bus 1

Cost 98600

Salvage Value = 8000

Depreciable Value = $90600

Staright Line Method

Depreciation for 31/03/2016 = 90600/5 = 18120

Depreciation for 31/03/2017 = $18120

Accumulated Depreciation as on 31/03/2017 = $36240

For Bus 2:-

Cost = $128000

Salvage Value = $10500

Decliniing Balance Method

So Depreciable Value will be same as cost

Rate of Depreciation for Double Declining Balance Method = Rate as per Staright Line Method * 2

= (1/4)*2 = 50%

Depreciation for 31/3/2017 = 128000*50%= $64000

Balance = 128000-64000 = $64000

Depreciation for the year 31/3/2017 = 64000*50% = 32000

Balance = $32000

Accumulated Depreication as on 31/3/2017 = 64000+32000 = $96000

For Bus 3:-

Cost = 78189

Units of Activity Method:-

Depreciation per mile = 0.62 Per Mile

Mile for 31/03/2016 = 26500

Depreciation for 31/03/2016 = 26500*0.62 =$16430

Miles for 31/03/2017 = 36000

Depreciation for 31/03/2017 = 36000*0.62 = $22320

Accumulated Depreciation as on 31/03/2017 = $16430+$22320 = $38750

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.