Publish By:
Admin,
Last Updated:
11-Jul-23
Price:
$120
In recent years, Sonya 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 | Salvage Value |
Useful Life in Years |
Depreciation Method |
|||||
1 | 1/1/10 | $ 117,400 | $ 6,600 | 4 | Straight-line | |||||
2 | 1/1/10 | 298,000 | 12,000 | 5 | Declining-balance | |||||
3 | 1/1/11 | 84,030 | 9,000 | 4 | Units-of-activity |
For the declining-balance method, the company uses the double-declining rate. For the units-ofactivity method, total miles are expected to be 123,000. Actual miles of use in the first 3 years were: 2011, 24,800; 2012, 35,600 ; and 2013, 29,300 .