In recent years, Blue Spruce Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Useful Life Salvage Value Depreciation Bus Acquired Cost in Years Method 1 Jan. 1, 2020 $ 95,600 $ 8,000 4 Straight-line 2 Jan. 1, 2020 119,000 12,000 Declining-balance 3 Jan. 1, 2021 91,300 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 119,000. Actual miles of use in the first 3 years were 2021, 28,000; 2022, 35,000; and 2023, 31,000. (a1) Your answer is correct. For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense 2$ 0.7 per mile eTextbook and Media Attempts: unlimited (a2) Your answer is incorrect. Compute the amount of accumulated depreciation on each bus at December 31, 2022. Accumulated depreciation BUS 1 BUS 2 $ BUS 3

In recent years, Blue Spruce Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Useful Life Salvage Value Depreciation Bus Acquired Cost in Years Method 1 Jan. 1, 2020 $ 95,600 $ 8,000 4 Straight-line 2 Jan. 1, 2020 119,000 12,000 Declining-balance 3 Jan. 1, 2021 91,300 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 119,000. Actual miles of use in the first 3 years were 2021, 28,000; 2022, 35,000; and 2023, 31,000. (a1) Your answer is correct. For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense 2$ 0.7 per mile eTextbook and Media Attempts: unlimited (a2) Your answer is incorrect. Compute the amount of accumulated depreciation on each bus at December 31, 2022. Accumulated depreciation BUS 1 BUS 2 $ BUS 3

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...

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