Waterways Tours uses the units-of-activity method in depreciating its tour boats. One boat was purchased on January

Question:

Waterways Tours uses the units-of-activity method in depreciating its tour boats. One boat was purchased on January 1, 2006, at a cost of $148,000. Over its four-year useful life, the boat is expected to be driven 100,000 miles. is expected to be $8,000.
(a) Compute the depreciation cost per unit.
(b) Prepare a depreciation schedule assuming actual mileage was: 2008, 26,000: 2009, 32,000: 2010, 25, 00; and 2011, 17,000.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...