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Please help me solve the last part of this accounting question Problem 9-2A In r

ID: 2568841 • Letter: P

Question

Please help me solve the last part of this accounting question

Problem 9-2A 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 shown as follows. Useful Life in Years Depreciation Method Salvage Bus Acquired Value Cost 96,000 110,000 92,000 6,000 10,000 8,000 Straight-line Declining-balance 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 2018, 24,000; 2019, 34,000; and 2020, 30,000. 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 0.7 per mile

Explanation / Answer

If bus 2 was purchased on April 1 instead january 1 what is depreciation expenses for this bus :

Straight line rate = 100/4 = 25%

Double decline rate = 25*2 = 50%

2017 depreciation = 110000*50% = 55000*9/12 = 41250

2018 depreciation = (55000*3/12)+(110000*50%*50%*9/12) = 34375