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Question - DeCamp Bus Line purchased a Bus on January 1 st of the current year for 105,000. The useful life was set at 5 years or 100,000 miles. The salvage value was determined to be 5,000. The bus was used 15,000 miles in the 1 st Year and 12,000 miles in the 2 nd , 3 rd and 4 th Year. Compute the depreciation for all the years using the following methods:
a) Straight Line Method of Depreciation
b) Double Declining Method of Depreciation
c) Sum of the Years Digit Method of Depreciation
d) The Production Method or Units of Activity Method
assuming that a new product will generate a segment margin of 65000 per year could be produced if the part were
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