(P10-2A) Depreciation of Bus 1-2-3 and expense 2008 and 2009 - 29392

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P10-2A

 

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

$96,000

$6,000

5

 

Straight-line

2

1/1/08

120,000

10,000

4

 

Declining-balance

3

1/1/09

  80,000

  8,000

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 120,000. Actual miles of use in the first 3 years were: 2009, 24,000; 2010, 34,000; and 2011, 30,000.

 

 

 

 

 

 

Compute the amount of accumulated depreciation on each bus at December 31, 2010.

Bus 1

$

Bus 2

$

Bus 3

$

 

 

 

 

 

 

 

 

If bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2008 and (2) 2009?

2008

$

2009

$

Solution Description

D

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depreciation of Bus 1-2-3 and expense 2008 and 2009 (P10-2A).doc
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