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Accounting

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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 shown.

For the declining-balance method, the company uses the double-declining 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 2014, 24,000; 2015, 34,000; and 2016, 30,000.

A. Compute the amount of accumulated depreciation on each bus at December 31, 2015.

B. If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2013 and (2) 2014?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92807902

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