Question

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.
Bus Acquired Cost Salvage
Value Useful Life
in Years Depreciation Method
1 1/1/09 $96,000 $6,000 5 Straight-line
2 1/1/09 120,000 10,000 4 Declining-balance
3 1/1/10 80,000 8,000 5 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 120,000. Actual miles of use in the first 3 years were: 2010, 24,000; 2011, 34,000; and 2012, 30,000.

Answer 1

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