Interstate Bus Lines uses the units-of-activity method in depreciating its buses One bus was purchased on January 1, 1998, at a cost of \(\$ 108,000\). Over its 4 -year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be \(\$ 8,000\)

\section*{Instructions}

(a) Compute the depreciation cost per unit.

(b) Prepare a depreciation schedule assuming actual mileage was: 1998, 28,000; 1999, 30,\(000 ; 2000,25,000\); and 2001, 17,000.