Posted by **vivian** on Saturday, November 6, 2010 at 2:14am.

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.

- math -
**Anonymous**, Friday, April 5, 2013 at 5:32am
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