Solution-Calculate depreciation expense per mile

Calculate depreciation expense per mile

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Reference no: EM131487914

Financial Accounting

In recent years, Avery 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 as follows.

Bus	Acquired	Cost	Salvage Value	Useful Life in Years	Depreciation Method
1	1/1/13	$98,300	$5,300	5	Straight-line
2	1/1/13	121,000	11,700	5	Declining-balance
3	1/1/14	80,340	8,700	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 119,400. Actual miles of use in the first 3 years were: 2014, 26,300; 2015, 34,300; and 2016, 29,600.

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

Reference no: EM131487914

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Calculate depreciation expense per mile

Reference no: EM131487914

Reference no: EM131487914

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