(Solution) - In recent years Harper Transportation purchased three used -(2025 Original AI-Free Solution)

Paper Details

In recent years, Harper Transportation purchased three used buses. Because of frequent employee turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below.

For the declining-balance method, Harper Transportation uses the double-declining rate. For the units-of-activity method, total miles are expected to be 160,000. Actual miles of use in the first 3 years were: 2011, 29,000; 2012, 34,000; and 2013, 35,000.
Instructions
(a) Compute the amount of accumulated depreciation on each bus at December 31, 2013.
(b) If Bus 2 was purchased on March 1 instead of January 1, what would be the depreciation expense for this bus in 2011? In 2012?