dugen.wileyplus.com/edugen/student/maintruni Weygandt, Financial Accounting, 9e

Question

dugen.wileyplus.com/edugen/student/maintruni Weygandt, Financial Accounting, 9e INCIAL ACCOUNTING (Acc - Assignment Gradebook ORION Downloadable etextbook nt CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK Problem 9-2A (Part Level Submission) 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 summarized as follows. Salvage Useful Life Depreciation Bus Acquired Cost Value in Years Method 1/1/13 $99,500 $7,400 Straight-line 1/1/13 113,000 10,400 Declining-balance 1/1/14 67,750 7,900 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 119,700. Actual miles of use in the first 3 years were: 2014, 25,100; 2015, 35,200; and 2016, 32,200. v (a1) Your answer is correct. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense 0.50 per mile o e O U R A a w gol

Explanation / Answer

At december 31 , 2015 : bus 1 and 2 will be 3 years old and bus 3 would be 2 years old

Accumulated dep :

Bus 1 : Dep per year = ( 99,500-7400)/4 = 23025

Accumulated dep. = 3*23025 = $69,075

Bus 2 :

Dep per year = ( 113000-10400)/4 = 25650

Accumulated dep. = 3*25650 = $76,950

Bus 3:

Dep per year = ( 67750-7900)/5 = 11970

Accumulated dep. = 2*11970 = $23,940

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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