Reference no: EM132718989

Question - In recent years, Sarasota 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	1/1/18	$99,300	$7,500	4	Straight-line
2	1/1/18	126,000	11,500	4	Declining-balance
3	1/1/19	91,100	8,500	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 118,000. Actual miles of use in the first 3 years were 2019, 27,000; 2020, 34,500; and 2021, 32,500.

Depreciation expense= $0.70 per unit

The amount of accumulated depreciation on each bus at December 31, 2020.

BUS 1=$68850

BUS 2=$110250

BUS 3=$43050

If Bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in (1) 2018 and (2) 2019?