Financial accounting | Accounting homework help

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   $98,300   $5,300   5   Straight-line
2   1/1/13   121,000   11,700   5   Declining-balance
3   1/1/14   80,340   8,700   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 119,400. Actual miles of use in the first 3 years were: 2014, 26,300; 2015, 34,300; and 2016, 29,600.

 

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer