Question: Oriole Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022. at a cost of $125,000. Over

Oriole Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022. 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. (a) Your answer is correct. Compute the depreciation cost per unit. (Round answer to 3 decimal places, e.g. 6.251) Depreciation cost per unit $ 0.53 Prepare a depreciation schedule assuming actual mileage was: 2022, 50,000; 2023, 65,000; 2024,51,200; and 2025, 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 Years Units of Activity x Depreciation Cost/Unit 2022 50000 2023 65000 53 $ 53 Annual Depreciation Expense 26500 Accumulated Depreciation 265 34450 609 2024 51250 53 27163 881 2025 33750 .53 17888 10600

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