Question 4 of 4 3.33/6 III View Policies Show Attempt History Current Attempt in...
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Question 4 of 4 3.33/6 III View Policies Show Attempt History Current Attempt in Progress In recent years, Riverbed 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 summarized as follows. Salvage Value Useful Life in Years Depreciation Method Bus Acquired Cost 1 1/1/18 $ 96,100 $7,000 4 Straight-line 2 1/1/18 119,000 11,000 5 Declining-balance 3 1/1/19 95,000 7,500 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 125,000. Actual miles of use in the first 3 years were 2019, 25,500; 2020, 34,500; and 2021, 30,000. (b) If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 2019? (Round answers to 0 decimal places, e.g. 2,125.) (1) 2018 (2) 2019 Depreciation expense $ $
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