P10-2A In recent years, Juresic Transportation purchased three used buses. Because of frequent

Price: $3.99

P10-2A 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. Information concerning the buses is

summarized on the next page

Salvage Useful Life

Bus Acquired Cost Value in Years Depreciation Method

1 1/1/06 $ 96,000 $ 6,000 5 Straight-line

2 1/1/06 120,000 10,000 4 Declining-balance

3 1/1/07 80,000 8,000 5 Units-of-activity

For the declining-balance method, the company uses the double-declining rate. For the units-ofactivity

method, total miles are expected to be 120,000. Actual miles of use in the first 3 years

were: 2007, 24,000; 2008, 34,000; and 2009, 30,000.

Instructions

(a) Compute the amount of accumulated depreciation on each bus at December 31, 2008.

(b) If bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense

for this bus in (1) 2006 and (2) 2007?