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In recent years, Ivanhoe Transportation purchased three used buses. Because of frequent turnover in the accounting department, different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized below. Residual Useful Life Depreciation Method Bus Acquired Cost Value in Years 1. 1/1/18 £ 95,600 £6,000 Straight-line 1/1/18 125,000 10,500 4 Declining-balance 1/1/19 90,600 8,000 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, 27,500; 2020, 36,000; and 2021, 33,000. Calculate depreciable cost per mile for Bus 3. (Round answer to 2 decimal places, eg. 0.50.) Depreciable cost per mile

In recent years, Ivanhoe Transportation purchased three used buses. Because of frequent turnover in the accounting department, different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized below. Residual Useful Life Depreciation Method Bus Acquired Cost Value in Years 1. 1/1/18 £ 95,600 £6,000 Straight-line 1/1/18 125,000 10,500 4 Declining-balance 1/1/19 90,600 8,000 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, 27,500; 2020, 36,000; and 2021, 33,000. Calculate depreciable cost per mile for Bus 3. (Round answer to 2 decimal places, eg. 0.50.) Depreciable cost per mile

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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In recent years, Ivanhoe 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 below. Residual Useful Life Depreciation Bus Acquired Cost Value in Years Method 1 1/1/18 £ 95,600 £6,000 Straight-line 2 1/1/18 125,000 10,500 4 Declining-balance 1/1/19 90,600 8,000 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, 27,500; 2020, 36,000; and 2021, 33,000. Calculate depreciable cost per mile for Bus 3. (Round answer to 2 decimal places, eg. 0.50.) Depreciable cost per mile
Transcribed Image Text:In recent years, Ivanhoe 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 below. Residual Useful Life Depreciation Bus Acquired Cost Value in Years Method 1 1/1/18 £ 95,600 £6,000 Straight-line 2 1/1/18 125,000 10,500 4 Declining-balance 1/1/19 90,600 8,000 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, 27,500; 2020, 36,000; and 2021, 33,000. Calculate depreciable cost per mile for Bus 3. (Round answer to 2 decimal places, eg. 0.50.) Depreciable cost per mile
Compute the amount of accumulated depreciation on each bus at December 31, 2020. Accumulated Depreciation at December 31, 2020 BUS 1 BUS 2 BUS 3 eTextbook and Media If Bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in 2018 and 2019? (Round answers to O decimal places, e.g. 2,125.) 2018 2019 Depreciation expense
Transcribed Image Text:Compute the amount of accumulated depreciation on each bus at December 31, 2020. Accumulated Depreciation at December 31, 2020 BUS 1 BUS 2 BUS 3 eTextbook and Media If Bus no. 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in 2018 and 2019? (Round answers to O decimal places, e.g. 2,125.) 2018 2019 Depreciation expense
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