Question: Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $148,000. Over

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $148,000. 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 depreciable cost per unit.
b. Prepare a depreciation schedule assuming actual mileage was: 2020, 26,000; 2021, 32,000; 2022, 25,000; and 2023, 17,000.

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a Depreciation cost per unit is 140 per mile 148000 8000 100000 148000 8000 100000 ... View full answer

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