This Website Has Been Moved to a New Link


Loading

Juresic Transportation

Price: $3.99


P9-2A 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. Information concerning the buses is summarized
below.

Salvage Useful Life
Bus Acquired Cost Value in Years Depreciation Method
1 1/1/09 $ 96,000 $ 6,000 5 Straight-line
2 1/1/09 120,000 10,000 4 Declining-balance
3 1/1/10 80,000 8,000 5 Units-of-activity

For the declining-balance method, the company uses the double-declining rate. For the units-ofactivity
method, total miles are expected to be 120,000. Actual miles of use in the first 3 years
were: 2010, 24,000; 2011, 34,000; and 2012, 30,000.

Instructions

(a) Compute the amount of accumulated depreciation on each bus at December 31, 2011.

(b) If bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense
for this bus in (1) 2009 and (2) 2010?

No comments:

Post a Comment