In recent years, Avery 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 conserning the buses is summarized as follow. Bus Acquired cost salvage Value Useful Life in Years Depreciation Method
1 1/1/12 $99,100 $7,900 4 Strait-line
2 1/1/12 128,000 11,000 4 Declining- balance
3 1/1/13 66,350 8,800 5 Unit-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 115,100. Actual miles of use in the first 3 years were: 2013, 23,400; 2014, 32,700; and 2015, 31,900. For Bus #3, calculate depreciation expense per mile under units-of-activity method.(Round answer to 2 decimal places, e.g.$0.50.).
Compute the amount of accumulated depreciation on each bus at December 31, 2014 (Round answers to 0 decimal places, e. g. $2,125.).
2014
BUS 1 $
BUS 2 $
BUS3 $
If bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in 2012 and 2013? (Round answers to 0 decimal places, e. g.$2,125.).
2012 2013
Depreciation expense $ $

1. For Bus #3, calculate depreciation expense per mile under units-of-activity method

Depreciation expense per mile = ((Cost of bus - Salvage value) / Total miles)

= ($66,350 - $8,800) / 115,100 miles  

= $0.5 per mile

The depreciation expense per mile is $0.5 per mile.

2. BUS 1

Depreciation for 1 year = (Cost of assets - Residual value) / Useful life

= $99,100−$7,900 / 4 years

= $22,800

Accumulated depreciation = Depreciation for 1 year * 3 years (from 2012 to 2014)

= $22,800 * 3 years

= $68,400

BUS 2

Depreciation rate = (1/4 *100)*2 = 50%

Years     Annual Depreciation                                    Accum. depreciation  

2012      $64,000(128,000*50%)                                      $64,000

2013      $32,000(128,000-64,000)*50%                         $96,000

2014       $16,000(128,000-64,000-32,000)*50%           $112,000

BUS 3

Accumulated depreciation = Depreciation expense per mile  * Total miles of 2013 and 2014

= $0.50 * (23,400 miles +32,700 miles)

= $0.50 * 56,100 miles

= $28,050

3. Depreciation rate = (1/4 *100)*2 = 50%

Years     Depreciation   Calculation  

2012      $48,000           128,000*50%*9/12

2013      $40,000           128,000-40,000*50%

So, the depreciation expense for Bus 2 for 2012 and 2013 is $48,000 and $40,000

-the personal ownership of property

-the influence of consumer demand

explanation:

the command economy prohibits the personal ownership of property.

basically, command economy is defined as the system where a nation’s government is the one that makes all the decisions when it comes to its economy. the government is the one who controls the production of goods and services and regulates the prices and salaries.

therefore, since that the government is the authority, then all kinds of personal ownership of property is prohibited by them.