Solution-Calculate depreciation expense per mile

Calculate depreciation expense per mile under-of-activity

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Question - In recent years, Avery Transpiration purchased three used buses. Because of frequent turnover in 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	1/1/13	$98,500	$7,100	4	Straight-line
2	1/1/13	113,000	10,100	5	Declining-balance
3	1/1/14	71,000	9,100	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 123,800. Actual miles of use in the first 3 years were: 2014, 27,400; 2015, 31,400; 2016, 32,300.

Required - Calculate depreciation expense per mile under-of-activity method.

Reference no: EM131749555

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Calculate depreciation expense per mile under-of-activity : In recent years, Avery Transpiration purchased three used buses. Calculate depreciation expense per mile under-of-activity method

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Calculate depreciation expense per mile under-of-activity

Reference no: EM131749555

Reference no: EM131749555

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