[/ : ] Adu M: Pharoah Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $146,000. Over its 4-year useful life, the bus is expected to be driven 246,250 miles. Salvage value is expected to be $8,100. [/ : ] Adu M: The Wildhorse Clinic purchased a new surgical laser for $151,200. The estimated salvage value is $7,200. The laser has a useful life of five years and the clinic expects to use it for 15,000 hours. It was used 2,880 hours in year 1; 3,780 hours in year 2; 4,320 hours in year 3; 3,420 hours in year 4; 3,600 hours in year 5.

Collapse question part (a) Compute the annual depreciation for each of the five years under each of the following methods:

(1) straight-line. (2) units-of-activity.