Question: Yello Bus Lines uses the units-of-production method in depreciating its buses. One bus was purchased on January 1, 2024, at a cost of $148,000. Over

Yello Bus Lines uses the units-of-production method in depreciating its buses. One bus was purchased on January 1, 2024, at a cost of $148,000. Over its four-year useful life, the bus is expected to be driven 100,000 kilometers. Residual value is expected to be $8,000.

Instructions

a. Calculate the depreciable amount per kilometer.

b. Prepare a depreciation schedule assuming actual kilometres driven each year were: 2024, 26,000; 2025, 32,000; 2026, 25,000; and 2027, 17,000.

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