Excercise P10 2B
3
DATA: Bus 1 DATA: Bus 2 DATA: Bus 3 Cost $98,000.00 Cost $140,000.00 Cost $92,000.00 $6,000.00 $10,000.00 $8,000.00 5 4 5 120,000 120,000 120,000 (A) Straight Line (Bus 1) ÷ = 96,000.00 120,000 $0.80 x = $0.80 34,000 $27,200 Expected Salvage Value Expected Salvage Value Expected Salvage Value Estimated useful life in years Estimated useful life in years Estimated useful life in years Estimated useful life in miles Estimated useful life in miles Estimated useful life in miles Depreciable Cost Total Units of Activity Depreciable Cost per Unit Depreciable Cost per Unit Units of Activity During the Year Annual Depreciation Expense
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Transcript of Excercise P10 2B
Sheet1DATA: Bus 1DATA: Bus 2DATA: Bus 3Cost$98,000.00Cost$140,000.00Cost$92,000.00Expected Salvage Value$6,000.00Expected Salvage Value$10,000.00Expected Salvage Value$8,000.00Estimated useful life in years5Estimated useful life in years4Estimated useful life in years5Estimated useful life in miles120,000Estimated useful life in miles120,000Estimated useful life in miles120,000(A)Straight Line (Bus 1)Depreciable CostTotal Units of Activity=Depreciable Cost per Unit96,000.00120,000$0.80Depreciable Cost per UnitxUnits of Activity During the Year=Annual Depreciation Expense$0.8034,000$27,200Declining-balance (Bus 2)Book Value at Beginning of YearxDeclining Balance Rate=Annual Depreciation Expense$140,000.0040%$56,000.00Units-of-activity (Bus 3)Depreciable CostTotal Units of Activity=Depreciable Cost per Unit$92,000.0012,000$7.67Depreciable Cost per UnitxUnits of Activity During the Year=Annual Depreciation Expense$7.6734,000$260,780(B)YearBook Value Beginning of YearxDepreciation RatexTime=Annual Depreciation2003$140,000.0040%9/12$42,000.002004$98,000.0040%$39,200.00
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