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In recent years, Juresic 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.

Bus Acquired Cost Salvage
Value Useful Life
in Years Depreciation Method
1 1/1/08 $97,800 $6,700 5 Straight-line
2 1/1/08 135,700 12,000 4 Declining-balance
3 1/1/09 74,730 8,300 4 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 121,600. Actual miles of use in the first 3 years were: 2009, 26,400; 2010, 35,200; and 2011, 31,700.


Compute the amount of accumulated depreciation on each bus at December 31, 2010. (Round unit depreciation cost per mile to 4 decimal places, e.g. 10.5000. Round final answers to 0 decimal places, e.g. 125.)

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M983524

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