Question: Ivanhoe Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2025, at a cost of $140,000. Over

Ivanhoe Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2025, at a cost of $140,000. Over its 4-year useful life, the bus is expected to be driven 240,000 miles. Salvage value is expected to be $9,200. (a) Your Answer Correct Answer (Used) Compute the depreciation cost per unit. (Round answer to 3 decimal places, e.g. 6.251.) Depreciation cost per unit $ 0.545 (b) Prepare a depreciation schedule assuming actual mileage was 2025, 56,000; 2026, 72,800; 2027, 57,400; and 2028, 53,800. (Round depreciation cost per unit to 3 decimal places, e.g. 0.125 and other answers to O decimal places, e.g. 125.) Computation End of Year Years Units of Activity x Depreciation Cost/Unit Annual Depreciation Expense Accumulated Depreciation Book Value 2025 $ $ $ 2026 2027 2028

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