Question: Copacabana Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2011, at a cost of R$168,000. Over

Copacabana Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2011, at a cost of R$168,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Residual value is expected to be R$8,000.

Instructions
(a) Compute the depreciation cost per unit.
(b) Prepare a depreciation schedule assuming actual mileage was: 2011, 26,000; 2012, 32,000; 2013, 25,000; and 2014, 17,000.

Step by Step Solution

★★★★★

3.37 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Depreciation cost per unit is R160 per mile R168000 R8000 100000 b Computatio... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

245-B-A-I-A (3078).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

A plant asset was purchased on January 1 for $100,000 with an estimated salvage value of $20,000 at the end of its useful life. The current year's Depreciation Expense is $10,000 calculated on the...

A plant asset was purchased on January 1 for $ 59200 with an estimated salvage value of $ 15000 at the end of its useful life. The current year's depreciation expense is $ 3400 calculated on the...

A small delivery truck was purchased on January 1 at a cost of $25,000. It has an estimated useful life of four years and an estimated salvage value of $5,000. Prepare a depreciation schedule showing...

1. Exercive 9-4 E9-4 Ann Tremel has prepared the following list of statements about depreciation. 4. 1. Depreciation is a process of asset valuation, not cost allocation. 2. Depreciation provides for...

Copacabana Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of R$145,000. Over its 4-year useful life, the bus is expected to...

Copacabana Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2014, at a cost of R$145,000. Over its 4-year useful life, the bus is expected to...

E9.5 (LO 2) Copacabana Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of R$145,000. Over its 4-year useful life, the bus is...

Copacabana Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of R$145,000. Over its 4-year useful life, the bus is expected to...

E9-5 Copacabana Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2014, at a cost of R$145,000. Over its 4-year useful life, the bus is...

E9-5 Copacabana Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on J anuar},r 1, 201?, at a cost of R$ 145,000. Over its 4- year useful life, the bus is...

Using the value maximization approach, financial managers maximize the value of the firm when they accept investment projects that have: Select one: cost of capital > ROIC b. ROIC cost of capital...

Compute the initial price of a swaption that matures at time t =5 and has a strike of 0. The underlying swap is the same swap as described in the previous question with a notional of 1 million. To be...

Multiple What is the formula for the present value of a growing perpetuity, where C 9 is the net cash flom, R is the required return andgisme goungu? P = C ? 2 ( R - g ) 2 P = Cdarr ( R - g ) R = P -...

What is the logic for the major contrary opinion rules used by technicians?

A company fails to recognize an expense incurred but not paid. Indicate which of the following accounts is debited and which is credited in the adjusting entry: (a) Asset, (b) Liability, (c) Revenue,...

A company makes an accrued revenue adjusting entry for $900 and an accrued expense adjusting entry for $700. How much was net income understated prior to these entries? Explain.

An adjusting entry may affect more than one balance sheet or income statement account. Do you agree? Why or why not?

can you write a psuedocode for this

What is the height of the curve at each score on the horizontal line of the frequency polygon based on? A- Frequency distribution B-Each score C-Descriptive Statistics D- Frequency of each score

in python, Under which circumstances is it possible to speed up an ODE integration with multiple cores?