Problem 9-2A (Part Level Submission) In recent years, Novak Transportation purchased three used buses. Because...
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Accounting
Problem 9-2A (Part Level Submission) In recent years, Novak 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 Bus Cost 1 Acquired 1/1/17 1/1/17 1/1/18 5 Salvage Value $ 7,000 10,000 8,000 $ 98,300 118,000 88,640 Depreciation Method Straight-line Declining-balance Units-of-activity 2 4 3 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 126,000. Actual miles of use in the first 3 years were 2018, 24,000; 2019, 31,500; and 2020, 30,000. (a1) Your answer is correct. 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 0.64 per mile 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 O decimal places, e.g. 2,125.) Accumulated depreciation BUS 1 $ BUS 2 $ BUS 3 $
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