50.1K

Verified Solution

Link Copied!

Problem 9-2A In recent years, Metlock 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. Salvage Useful Life Depreciation Bus Acquired Cost Value in Years Method 1/1/17 $ 99,500 $ 5,500 Straight-line 2 1/1/17 115,000 11,000 Declining-balance 1/1/18 84,300 7,500 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 128,000. Actual miles of use in the first 3 years were 2018, 28,000; 2019, 34,000; and 2020, 31,500. 1 w N x Your answer is incorrect. Try again. For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost 1.64 per mile | Your answer is incorrect. Try again. Compute the amount of accumulated depreciation on each bus at December 31, 2019. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to o decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 112800 EX x BUS 2 209760 x BUS 3 300940 Problem 9-4A At the beginning of 2017, Cheyenne Corp. acquired equipment costing $159,000. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $15,900 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year. During 2019 (the third year of the equipment's life), the company's engineers reconsidered their expectations and estimated that the equipment's useful life would probably be 7 years (in total) instead of 6 years. The estimated salvage value was not changed at that time. However, during 2022, the estimated salvage value was reduced to $5,000. w Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table. Year Depreciation Expense Accumulated Depreciation 2017 $ 2018 2019 2020 2021 2022 2023

Answer & Explanation Solved by verified expert

See Answer