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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