Question - 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.
|
Bus
|
Acquired
|
Cost
|
Salvage
Value
|
Useful Life
in Years
|
Depreciation
Method
|
|
1
|
1/1/15
|
$ 99,000
|
$ 5,500
|
4
|
Straight-line
|
|
2
|
1/1/15
|
124,000
|
11,000
|
5
|
Declining-balance
|
|
3
|
1/1/16
|
78,300
|
7,500
|
5
|
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 118,000. Actual miles of use in the first 3 years were 2016, 24,500; 2017, 31,000; and 2018, 32,500.
For Bus #3, calculate depreciation expense per mile under units-of-activity method.
Compute the amount of accumulated depreciation on each bus at December 31, 2017.