Marigold Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2027, at a cost of $224,158. Over its 8-year useful life, the bus is expected to be driven 153,800 miles. Salvage value is expected to be $7,300. (a). (b) Prepare a depreciation schedule assuming A tual mileage was: 2027, 25,800; 2028, 46,000; 2029, 39,000; and 2030, 43,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.) Computation Units of Activity Depreciation Cost /Unit Year 2027 = Annual Depreciation Expense Accumulate Depreciatio $ $ 2028 2029 2030 To prepare a comprehensive depreciation schedule for Marigold Bus Lines using the units-of-activity method, we will calculate the depreciation cost per unit, determine the annual depreciation expense for each year based on actual mileage, and then summarize the accumulated depreciation and book value at the end of each year. ### Step 1: Calculate Depreciation Cost per Unit 1. **Cost of the Bus**: $224,158 2. **Salvage Value**: $7,300 3. **Useful Life in Miles**: 153,800 miles **Total Depreciable Amount**: \[ \text{Total Depreciable Amount} = \text{Cost} - \text{Salvage Value} = 224,158 - 7,300 = 216,858 \] **Depreciation Cost per Unit**: \[ \text{Cost per Unit} = \frac{\text{Total Depreciable Amount}}{\text{Useful Life in Miles}} = \frac{216,858}{153,800} \approx 1.41 \] (Rounded to **$1.41**) ### Step 2: Calculate Annual Depreciation Expense Now, we will calculate the annual depreciation expense for each year based on the actual mi