Question

In recent years, Swifty Transportation purchased three used buses. Because of frequent turnover in the accoun...

In recent years, Swifty 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 as follows.

Bus

Acquired

Cost

Salvage
Value

Useful Life
in Years

Depreciation
Method

1 1/1/17 $ 99,400 $ 7,500 4 Straight-line
2 1/1/17 118,000 10,000 4 Declining-balance
3 1/1/18 82,400 8,000 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 120,000. Actual miles of use in the first 3 years were 2018, 27,000; 2019, 31,500; and 2020, 31,500.
For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)
Depreciable cost $

per mile

Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.)

Accumulated depreciation

BUS 1

$

BUS 2

$

BUS 3

$

If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 2018? (Round answers to 0 decimal places, e.g. 2,125.)

(1)
2017

(2)
2018

Depreciation expense $

$

0 1
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciable cost (82400-8000/120000) $0.62

per mile

Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.)

Accumulated depreciation

BUS 1

(99400-7500/4*3) $68925

BUS 2

118000-(118000*50%*50%*50%) $103250

BUS 3

58500*.62 $

36270

If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2017 and (2) 2018? (Round answers to 0 decimal places, e.g. 2,125.)

(1)
2017

(2)
2018

Depreciation expense $118000*50%*9/12 = 44250

$14750+22125 = 36875

Add a comment
Know the answer?
Add Answer to:
In recent years, Swifty Transportation purchased three used buses. Because of frequent turnover in the accoun...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • In recent years, Pina Colada Transportation purchased three used buses. Because of frequent turnover in the...

    In recent years, Pina Colada 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 Value Useful Life in Years Depreciation Method Acquired Bus Cost 1/1/18 $97,000 8,000 Straight-line 1 5 Declining-balance 1/1/18 2 127,000 11,500 5 94,100 Units-of-activity 3 1/1/19 8,000 4 For the declining-balance method, the company uses the double-declining rate....

  • Problem 9-2A In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in...

    Problem 9-2A 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 1/1/13 $97,900 $6,800 4 Straight-line 2 1/1/13 112,000 11,100 5 Declining-balance 3 1/1/14 83,360 8,900 4 Units-of-activity For the declining-balance method, the company uses the double-declining...

  • Problem 10-02A al-b In recent years, Sheffield Transportation purchased three used buses. Because of frequent turnover...

    Problem 10-02A al-b In recent years, Sheffield Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each us, and various methods were selected. Information concerning the buses issummarized as follows Depreciation Hus Useful Life in Years Aquired 1/1/18 1/1/13 1/1/19 Cost 9 0,000 121,000 95,000 Salvage Valu $7,500 12.000 7.500 Straight line Declining balance Units of activity For the declining balance method, the company uses the double-declining rate....

  • In recent years, Novak Transportation purchased three used buses. Because of frequent turnover in the accounting...

    In recent years, Novak 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 1/1/18 $ 99,000 $ 5,500 5 Straight-line 2 1/1/18 110,000 10,500 4 Declining-balance 3 1/1/19 89,000 8,500 4 Units-of-activity For the declining-balance method, the company uses the double-declining...

  • In recent years, Bramble Transportstion purchased three used buses. Because of frequent turnover in the accounting depar...

    In recent years, Bramble Transportstion 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 as follows [refer to photo attached]. For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 112,000. Actual miles of use in the first 3 years were 2019, 27,500; 2020, 33,000; and...

  • Problem 9-2A (Part Level Submission) In recent years, Novak Transportation purchased three used buses. Because of...

    Problem 9-2A (Part Level Submission) In recent years, Novak 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 as follows. Bus Acquired Cost Salvage Value Useful Life in Years Depreciation Method 1 1/1/17 $ 98,300 $ 7,000 5 Straight-line 2 1/1/17 118,000 10,000 4 Declining-balance 3 1/1/18 88,640 8,000 4 Units-of-activity For the declining-balance method,...

  • In recent years, Concord Transportation purchased three used buses. Because of frequent turnover in the accounting...

    In recent years, Concord 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 as follows. Bus Acquired Cost Salvage Value Useful Life in Years Depreciation Method 1 1/1/18 $ 96,600 $ 7,000 4 Straight-line 2 1/1/18 123,000 12,000 5 Declining-balance 3 1/1/19 78,100 8,500 5 Units-of-activity For the declining-balance method, the company uses the double-declining...

  • Fixed Assets and Depreciation In recent years, Kevin Transportation purchased three used buses. Because of frequent...

    Fixed Assets and Depreciation In recent years, Kevin 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 1/1/18 $96,000 96,000 5 straight line 2 1/1/18 $110,000 10,000 4 declining 3 1/1/19 $92,000 8,000 5 units of activity For the declining-balance method,...

  • Fixed Assets and Depreciation In recent years, Kevin Transportation purchased three used buses. Because of frequent...

    Fixed Assets and Depreciation In recent years, Kevin 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 Iife in Years Depreciation Method 1 1/1/18 $96,000 6000 5 straight line 2 1/1/18 $110,000 10000 4 declining 3 1/1/19 $92,000 8000 5 units of activity For the declining-balance method,...

  • Accounting

    In recent years, Pharoah 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 as follows.BusAcquiredCostSalvageValueUseful Lifein YearsDepreciation Method11/1/17$ 95,500$ 5,0005Straight-line21/1/17126,00010,5005Declining-balance31/1/1887,8608,5004Units-of-activityFor the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 128,000. Actual miles of use in the first 3 years were 2018, 23,500; 2019, 33,500; and 2020, 30,000.        ...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT