Question

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2014, at a cost of $148,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $8,000.

Instructions
(a) Compute the depreciable cost per unit.
(b) Prepare a depreciation schedule assuming actual mileage was: 2014, 26,000; 2015, 32,000; 2016, 25,000; and 2017, 17,000.



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  • CreatedJanuary 30, 2014
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