Question: Blossom Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $117,000. Over
Blossom Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $117,000. Over its 4-year useful life, the bus is expected to be driven 210,000 miles. Salvage value is expected to be $7,800.
Compute the depreciation cost per unit. (Round answer to 3 decimal places, e.g. 6.251)
| Depreciation cost per unit | $enter the depreciation cost per unit in dollars rounded to 3 decimal places |
Prepare a depreciation schedule assuming actual mileage was: 2022, 46,800; 2023, 60,000; 2024, 47,000; and 2025, 56,200. (Round depreciation cost per unit to 3 decimal places, e.g. 0.125 and other answers to 0 decimal places, e.g. 125)
| Computation | End of Year | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Years | Units of Activity | Depreciation Cost/Unit | = | Annual Depreciation Expense | Accumulated Depreciation | Book Value | ||||
| 2022 | enter units of activity in miles rounded to 0 decimal places | $enter depreciation costs per unit in dollars rounded to 3 decimal places | $enter annual depreciation expenses in dollars rounded to 0 decimal places | $enter end-of-year accumulated depreciation in dollars rounded to 0 decimal places | $enter end-of-year book value in dollars rounded to 0 decimal places | |||||
| 2023 | enter units of activity in miles rounded to 0 decimal places | enter depreciation costs per unit in dollars rounded to 3 decimal places | enter annual depreciation expenses in dollars rounded to 0 decimal places | enter end-of-year accumulated depreciation in dollars rounded to 0 decimal places | enter end-of-year book value in dollars rounded to 0 decimal places | |||||
| 2024 | enter units of activity in miles rounded to 0 decimal places | enter depreciation costs per unit in dollars rounded to 3 decimal places | enter annual depreciation expenses in dollars rounded to 0 decimal places | enter end-of-year accumulated depreciation in dollars rounded to 0 decimal places | enter end-of-year book value in dollars rounded to 0 decimal places | |||||
| 2025 | enter units of activity in miles rounded to 0 decimal places | enter depreciation costs per unit in dollars rounded to 3 decimal places | enter annual depreciation expenses in dollars rounded to 0 decimal places | enter end-of-year accumulated depreciation in dollars rounded to 0 decimal places | enter end-of-year book value in dollars rounded to 0 decimal places | |||||
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