Exercise 9-19

Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $125,000. Over its 4-year useful life, the bus is expected to be driven 220,000 miles. Salvage value is expected to be $8,400.

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

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Prepare a depreciation schedule assuming actual mileage was: 2017, 50,000; 2018, 65,000; 2019, 51,250; and 2020, 33,750. (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 2017 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 2018 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 2019 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 2020 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