Question: Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $135,800. Over
Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $135,800. Over its 4-year useful life, the bus is expected to be driven 92,000 miles. Salvage value is expected to be $7,000.
depreciable cost per unit is 1.4
Prepare a depreciation schedule assuming actual mileage was: 2019, 24,000; 2020, 28,000; 2021, 23,000; and 2022, 17,000. (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 | Depreciable Cost /Unit | = | Annual Depreciation Expense | Accumulated Depreciation | Book Value | ||||
| 2019 | ||||||||||
| 2020 | ||||||||||
| 2021 | ||||||||||
| 2022 | ||||||||||
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
