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
|
1/1/08
|
$96,000
|
$6,000
|
5
|
|
Straight-line
|
|
2
|
1/1/08
|
120,000
|
10,000
|
4
|
|
Declining-balance
|
|
3
|
1/1/09
|
80,000
|
8,000
|
5
|
|
Units-of-activity
|
For the declining-balance method, the company uses the double-declining rate.