Question: Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, 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, 2017, 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: 2017, 26,000; 2018, 32,000; 2019, 25,000; and 2020, 17,000.

Step by Step Solution

★★★★★

3.43 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Depreciable Cost per unit Depreciable Cost per unit Cost of Asset Salvage Value Estimated Total ... 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

Document Format (2 attachments)

426_61d57f2606bfd_826972.pdf

180 KBs PDF File

426_61d57f2606bfd_826972.docx

120 KBs Word File

Students Have Also Explored These Related Accounting Principles IFRS 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...

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...

View Policies Current Attempt in Progress Yello Bus Lines uses the units - of - activity method in depreciating its buses. One bus was purchased on January 1 , 2 0 2 2 , at a cost of \ ( \ $ 2 3 2 ,...

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 $215,150. 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....

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...

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 $240,418. Over its 4-year useful life, the bus is expected to be...

Research your assigned Fortune 500 company for your final project. Answer the following questions. Please remember that I require you to restate the question in your answer, and you must provide me...

In February 2014, Ceramic Crucibles of America was notified by the state of Colorado that the state was investigating the companys Durango facility to determine if there were any violations of...

pls ans Question 9 (1 point) LCL shipments are defined as follows: Shipments delivered by a large-content shipping line. In-transit goods. )Shipments that make up less than a container load....

AMP Corporation (calendar-year-end) has 2016 taxable income of $900,000 before the 179 expense. During 2016, AMP acquired the following assets: Asset Placed in Service Basis Machinery September 12...

The trial balance of Terry Manning Fashion Center contained the following accounts at November 30, the end of the companys fiscal year. Adjustment data: 1. Store supplies on hand totaled $2,500. 2....

Pauls Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Pauls inventory consisted of books purchased for...

Newman Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Newman showed Cash of $5,000 and Newman, Capital of $5,000. May 1...

Listed below are systolic blood pressure measurements (in mm Hg) obtained from the same woman. Find the regression equation, letting the right arm blood pressure be the predictor (x) variable. Find...

Do you believe these statistics? why or why not. The first variable in healthcare that I work with is temperatures of my post-surgical patients.Solet's say thatI had 3 normal temperatures of 36.7,...

Use the following selected data from Business Solutions's income statement for the three months ended March 31,2022 , and from its March 31 . 2022 , balance sheet to complete the requirements....