60.1K

Verified Solution

Link Copied!

In recent years, Sarasota Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Salvage Value Bus Acquired Cost Useful Life in Years 1 Jan. 1. 2020 $ 96,800 $ 7.500 5 Depreciation Method Straight-line Declining-balance Units-of-activity 2 Jan. 1.2020 111,000 10,500 4 3 Jan 1, 2021 92.900 7.500 4 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 122,000. Actual miles of use in the first 3 years were 2021. 25,000; 2022, 31,000; and 2023, 32.000 In recent years, Sarasota Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Salvage Value Bus Acquired Cost Useful Life in Years 1 Jan. 1. 2020 $ 96,800 $ 7.500 5 Depreciation Method Straight-line Declining-balance Units-of-activity 2 Jan. 1.2020 111,000 10,500 4 3 Jan 1, 2021 92.900 7.500 4 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 122,000. Actual miles of use in the first 3 years were 2021. 25,000; 2022, 31,000; and 2023, 32.000

Answer & Explanation Solved by verified expert

See Answer