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# Problem #3: Fixed Assets and DepreciationIn recent years, Kevin 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 concerning the buses is

summarized as follows.

Bus Acquired Cost Salvage Value Useful Iife in Years Depreciation Method

1 1/1/17 \$96,000 6,000 5 Straight-line

2 1/1/17 \$110,000 10,000 4 Declining

3 1/1/18 \$92,000 8,000 5 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 2018, 24,000; 2019, 34,000; and 2020, 30,000. Instructions (a) Compute the amount of accumulated depreciation on each bus at December 31, 2019

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