Question: Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $100,000. Over

Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $100,000. 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 2022, 40,000; 2023, 52,000; 2024, 41,000; and 2025, 27,000.

Step by Step Solution

★★★★★

3.38 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Depreciation cost per unit is 575 per mile 100000 8000 160000 b C... 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 Financial Accounting Tool 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...

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...

Gordon Chemicals Company acquires a delivery truck at a cost of $38, 400 on January 1, 2017. The truck is expected to have a salvage value of $2, 400 at the end of its 4-year useful life. Assuming...

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 $101, 000. Over its 4-year useful life, the bus is expected to be...

Need Help with accumulated depreciation and book value! Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1,2022, at a cost of $100,000....

Deborah and Peter Brown have been clients of your bank for a number of years. They have made an appointment to discuss their financial matters with you . Peter aged 53, is a senior manager in a...

A mixture of CO2 and N2 is in a container at 25C, with each species having a partial pressure of 1 bar. Calculate the molar concentration, the mass density, the mole fraction, and the mass fraction...

Risk that is diversified away Blank _ _ _ _ _ _ by the APT. Multiple choice question. is is not

2. List one advantage and one disadvantage of using a real estate broker to sell a home.

Miller Corporation has a current ratio of 1.1. Ron has always been told that a corporations current ratio should exceed 2.0. Miller argues that its ratio is low because it has a minimal amount of...

What are the implications for analysis if a company has significant operating leases?

What criteria must be met before a contingency must be recorded as a liability? How should the contingency be disclosed if the criteria are not met?

Let ye be a stock price observed at some consecutive days t = 1, 2, ..,100. The analyst estimates a model as Ay, = 1 + 0.5y-1. Given y100 = 2 she can forecast 101 - 10o att = 101 to be: O a. 99 O b....

Java question: The goal of this project is to create a Food Diary. This diary should contain breakfast, lunch, dinner and Snacks that you consume during the day. The user should be able to enter...

Precision Putters Inc. Precision Putters Inc. is a manufacturer of high quality putters for the golfing industry. The company was started eight years ago by Jake Johnson. Jake was an avid golfer with...