Always-Late Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2004, at a cost of $128,000. Over its four-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $8,000. LO9 Instructions

(a) Compute the depreciation cost per unit.

(b) Prepare a depreciation schedule assuming actual mileage was: 2004, 26,000; 2005, 32,000;

2006, 25,000; and 2007, 17,000.