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

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                                                                                                    $