In recent years, Juresic 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.
For the declining-balance method, the company uses the double-declining rate. For the units-of activity method, total miles are expected to be 123,500. Actual miles of use in the first 3 years were: 2009, 27,900; 2010, 34,900; and 2011, 31,600.
Bus 1
Acquired: 1/1/08
Cost: $98,300
Salvage value: $7,800
Useful life in years: 5
Depreciation Method: Straight Line
Bus 2
Acquired: 1/1/08
Cost: $122,300
Salvage Value: $10,200
Useful life in years: 5
Depreciation Method: Declining Balance
Bus 3
Acquired: 1/1/09
Cost: $79,199
Salvage Value : $9,100
Useful Life in years: 4
Depreciation Method) Unit-of-Activity
Tags: 2010, 31, Accumulated, Amount, bus, Compute, dec, Depreciation