In recent years, Marigold Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Bus 1 2 3 Acquired Jan 1, 2020 Jan 1, 2020 (a1) Jan, 1, 2021 Cost $99,200 111,000 92,500 Salvage Value $6,000 11,500 8,500 Useful Life in Years 4 4 4 Depreciation Method: Straight-line Declining-balance 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 2021, 26,000; 2022, 34,500; and 2023, 30,000.

In recent years, Marigold Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each bus, and various methods have been used. Information concerning the buses is summarized in the table below. Bus 1 2 3 Acquired Jan 1, 2020 Jan 1, 2020 (a1) Jan, 1, 2021 Cost $99,200 111,000 92,500 Salvage Value $6,000 11,500 8,500 Useful Life in Years 4 4 4 Depreciation Method: Straight-line Declining-balance 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 2021, 26,000; 2022, 34,500; and 2023, 30,000.

Name: F In recent years, Marigold Transportation purchased three used buses.
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Description: F In recent years, Marigold Transportation purchased three used buses. Because of frequent turnover in the accounting department, adifferent accountant was in charge of selecting the depreciation method for each bus, and various methods have been use

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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