Pronghorn Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $226,472. Over its 8-year useful life, the bus is expected to be driven 139,600 miles. Salvage value is expected to be $7,300.

(a)

Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciation cost per unit

$ per mile

Prepare a depreciation schedule assuming actual mileage was: 2020, 31,600; 2021, 37,000; 2022, 27,000; and 2023, 44,000. (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								End of Year
Year		Units of Activity	x	Depreciation Cost /Unit	=	Annual Depreciation Expense		Accumulated Depreciation		Book Value
2020				$		$		$		$
2021
2022
2023