In recent years, Harper Transportation purchased three used buses. Because of frequent employee turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below.
| Salvage Don't use plagiarized sources. Get Your Custom Essay on in recent years harper transportation purchased three used buses because of frequent 534583 For $10/Page 0nly | Useful Life | ||||
| Bus | Acquired | Cost | Value | (in years) | Depreciation Method |
| 1 | Jan. 1, 2011 | $ 96,000 | $ 6,000 | 5 | Straight-line |
| 2 | Jan. 1, 2011 | 135,000 | 10,000 | 4 | Declining-balance |
| 3 | Jan. 1, 2011 | 100,000 | 4,000 | 5 | Units-of-activity |
For the declining-balance method, Harper Transportation uses the double-declining rate. For the units-of-activity method, total miles are expected to be 160,000. Actual miles of use in the first 3 years were: 2011, 29,000; 2012, 34,000; and 2013, 35,000.
Instructions
(a) Compute the amount of accumulated depreciation on each bus at December 31, 2013.
(b) If Bus 2 was purchased on March 1 instead of January 1, what would be the depreciation expense for this bus in 2011? In 2012?
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