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.
Bus Acquired Cost Salvage
Value Useful Life
in Years Depreciation Method
1 1/1/09 $96,000 $6,000 5 Straight-line
2 1/1/09 120,000 10,000 4 Declining-balance
3 1/1/10 80,000 8,000 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 120,000. Actual miles of use in the first 3 years were: 2010, 24,000; 2011, 34,000; and 2012, 30,000.
Compute the amount of accumulated depreciation on each bus at December 31, 2011. (Round unit depreciation cost per mile to 2 decimal places, e.g. 10.50. Round final answers to 0 decimal places, e.g. 125.)
Bus 1 $
Bus 2 $
Bus 3 $
If bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2009 and (2) 2010?
2009 $
2010 $