Questions: Question 7.10 Incorrect name to register transportation purchases that use business smart card has been input. Patient Admin's name was used instead of Alex Admin. Bus1 cumulated down credits Jan 1, 2020 96,000 Bus2 119,000 Bus3 cumulated down credits Jan 1, 2021 90,000 Acquired Cost Value Method 1 Jan 1,2020 96,000 5 2 Jan 1,2020 119,000 4 3 Jan 1,2021 90,000 5 For calculating corporate taxes, the company uses tax double-declining for the first 2 years and straight-line method for the remaining 3 years. Assume that buses are expected to be kept for 5 years. All buses get zero return at the end of their useful lives. Compute the accumulated depreciation on all buses at December 31, 2022. Assume all buses are purchased on January 1. BUS1 BUS2 BUS3

To compute the accumulated depreciation on all buses at December 31, 2022, we need to apply the depreciation methods specified: the double-declining balance method for the first two years and the straight-line method for the remaining three years. The buses are expected to be kept for 5 years, and all have zero salvage value at the end of their useful lives.

• Cost: $96,000
• Useful Life: 5 years

1. Double-Declining Balance Method (First 2 Years):

   • Year 1: Depreciation = 2 * (1/5) * $96,000 = $38,400
   • Year 2: Depreciation = 2 * (1/5) * ($96,000 - $38,400) = $22,560

2. Straight-Line Method (Next 3 Years):

   • Remaining value after 2 years = $96,000 - $38,400 - $22,560 = $35,040
   • Annual Depreciation = $35,040 / 3 = $11,680

3. Accumulated Depreciation by December 31, 2022:

   • Year 1 + Year 2 + Year 3 = $38,400 + $22,560 + $11,680 = $72,640

• Cost: $119,000
• Useful Life: 5 years

1. Double-Declining Balance Method (First 2 Years):

   • Year 1: Depreciation = 2 * (1/5) * $119,000 = $47,600
   • Year 2: Depreciation = 2 * (1/5) * ($119,000 - $47,600) = $28,560

2. Straight-Line Method (Next 3 Years):

   • Remaining value after 2 years = $119,000 - $47,600 - $28,560 = $42,840
   • Annual Depreciation = $42,840 / 3 = $14,280

3. Accumulated Depreciation by December 31, 2022:

   • Year 1 + Year 2 + Year 3 = $47,600 + $28,560 + $14,280 = $90,440

• Cost: $90,000
• Useful Life: 5 years

1. Double-Declining Balance Method (First 2 Years):

   • Year 1: Depreciation = 2 * (1/5) * $90,000 = $36,000
   • Year 2: Depreciation = 2 * (1/5) * ($90,000 - $36,000) = $21,600

2. Straight-Line Method (Next 3 Years):

   • Remaining value after 2 years = $90,000 - $36,000 - $21,600 = $32,400
   • Annual Depreciation = $32,400 / 3 = $10,800

3. Accumulated Depreciation by December 31, 2022:

   • Year 1 + Year 2 = $36,000 + $21,600 = $57,600 (since only 2 years have passed for Bus3 by the end of 2022)

• Bus1: $72,640
• Bus2: $90,440
• Bus3: $57,600

These calculations provide the accumulated depreciation for each bus as of December 31, 2022.