Problem #2: Fixed Assets Valuations-DepreciationMethods In recent years, Blue Transportationpurchased three trucks on January 1, 2024. Becauseof frequent turnover in the accounting department, adifferent accountant selected the depreciation methodfor each bus, and various methods were selected.Information concerning the buses is summarized asfollows. Truck #1 Cost: $ 130,000; Salvage Value $10,000, Number of Years: 8; Depreciation Method:Straight-line Truck # 2: Cost: 41,000, Salvage Value:1,000; Number of Years: 5; Depreciation Method:Declining - balance Truck # 3: Cost: 102,000 SalvageValue: $8,000; number of years: 6; DepreciationMethod: Units - of- activity For the declining - balancemethod, the company uses the double-declining rate.For the units of activity method, total miles areexpected to be 120,000. Actual miles of use in the first3 years were 2024, 24,000; 2025, 34,000; and2026, 30,000. Instructions (a) Compute the amount ofaccumulated depreciation on each bus at December31, 2024. (b) what are the depreciation expenses forall three buses in (1) 2024 and (2) 2025 and(3) 2026? (c) Make journal entries for 2025 and 2026under Double Declining Method

The objective of the question is to calculate the accumulated depreciation on each truck at December…

Answered: Problem #2: Fixed Assets…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 29P

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