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Category > Management Posted 22 Nov 2017 My Price 7.00

Avery Transportation

Problem 10-2A

In recent years, Avery 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.

Bus   Acquired   Cost   Salvage
Value		   Useful Life
in Years		   Depreciation
Method
1   1/1/15   $ 96,000   $ 6,500   5   Straight-line
2   1/1/15   122,000   12,000   5   Declining-balance
3   1/1/16   93,000   9,000   4   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 120,000. Actual miles of use in the first 3 years were 2016, 24,000; 2017, 35,500; and 2018, 32,000.

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Maurice Tutor
(5)
Status NEW Posted 22 Nov 2017 08:11 PM My Price 7.00

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