Jayhawk Bus Lines uses the units of activity method in depreciating its buses One bus was purchased on January 1, 2010, at a cost of $136,000 Over its 4 year useful life, the bus is expected to be driven 160,000 miles Salvage value is expected to be $8,000 Instructions (a) Compute the depreciation cost per unit (b) Prepare a depreciation schedule assuming actual mileage was 2010, 40,000 2011, 52,000 2012, 41,000 and 2013, 27,000

Question: Jayhawk Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2010, at a cost of $136,000. Over

Jayhawk Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2010, at a cost of $136,000. Over its 4-year useful life, the bus is expected to be driven 160,000 miles. is expected to be $8,000.

Instructions
(a) Compute the depreciation cost per unit.
(b) Prepare a depreciation schedule assuming actual mileage was: 2010, 40,000; 2011, 52,000; 2012, 41,000; and 2013, 27,000.

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