Question: Tilda Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2012, at a cost of $168,000. Over

Tilda Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2012, at a cost of $168,000. 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 depreciation cost per unit.
(b) Prepare a depreciation schedule assuming actual mileage was: 2012, 26,000; 2013, 32,000; 2014, 25,000; and 2015, 17,000.

Step by Step Solution

★★★★★

3.35 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

A Depreciation cost per unit Orginal cost Salvage value Expected KM driven during l... 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

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 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...

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...

Tilda Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2012, at a cost of $168,000. Over its 4-year useful life, the bus is expected to be...

E10-5 Tilda Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2012, at a cost of $168,000. Over its 4-year * useful life, the bus is expected...

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $ 148,000. Over its 4-year useful life, the bus is expected to be...

1. Blue Spruce Corp. purchased a new machine on October 1, 2019, at a cost of $134,000. The company estimated that the machine will have a salvage value of $20,000. The machine is expected to be used...

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $205,860. Over its 4-year useful life, the bus is expected to be...

kindly answer missing parts (b) Prepare a depreciation schedule assuming actual mileage was: 2022, 40,600; 2023, 42.000; 2024, 49,000; and 2025, 31.000. (Round cost per unit to 2 decimal places, e.g....

Exercise 9-19 Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $131,000. Over its 4-year useful life, the bus is...

Former NAB chief of staff sentenced to eight years jail over kickback scheme January 27, 2021-2.11pm A former chief of staff to National Australia Bank CEOs will spend more than four years behind...

If a project is represented by the above presented cash flow diagram, what rate of return should be used? External rate of return Market rate of return Explicit rate of return S1,000 $6.000 years...

12 Which of these two calculation cards gives the smaller answer? Explain how you made your decision. 13 13 A 32+ B 35+ 15 15

Is Learn ln Motion's current compensation program motivating their staff? Or is it hindering employee performance? Of all its HR programs, those relating to pay for performance and incentives are...

How may a budget report for the second quarter differ from a budget report for the first quarter?

Joe Cey questions the usefulness of a master sales budget in evaluating sales performance. Is there justification for Joes concern? Explain.

A flexible budget is really a series of static budgets. Is this true? Why?

Peleh writes a put option on Japanese yen with a strike price of $ 0 . 0 0 8 0 / at a premium of 0 . 0 0 8 0 cents per yen and with an expiration date six months from now. The option is for 1 2 , 5 0...

EPS and postmerger price Data for Henry Company and Mayer Services are given in the following table, Company is considering merging with Mayer by swapping 1.31 shares of its stock for each share of...

Net cash flow and timeline depiction For each of the following projects, determine the net cash flows, and depict the cash flows on a time line. a. A project that requires an initial investment of...