AB 116 WEEK 3 Problem 10 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 1/1/12 $ 99,000 $ 7,600 4 Straight-line
2 1/1/12 128,000 10,200 5 Declining-balance
3 1/1/13 67,450 9,000 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 116,900. Actual miles of use in the first 3 years were: 2013, 23,800; 2014, 32,500; and 2015, 31,600.
If bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in 2012 and 2013? (Round answers to 0 decimal places, e.g. $2,125.)
USA 
India