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 $148,000 Over its 4 year useful life, the bus is expected to be driven 100,000 miles Salvage value is expected to be $8,000 Instructions (a) Compute the depreciable cost per unit (b) Prepare a depreciation schedule assuming actual mileage was 2019, 26,000 2020, 32,000 2021, 25,000 and 2022, 17,000

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 $148,000. 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 $148,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. is expected to be $8,000.
Instructions
(a) Compute the depreciable cost per unit.
(b) Prepare a depreciation schedule assuming actual mileage was: 2019, 26,000; 2020, 32,000; 2021, 25,000; and 2022, 17,000.

Step by Step Solution

★★★★★

3.28 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Depreciation cost per unit is 140 per mile 148000 8000 100000 Cost Est SV Est tot units b Comp... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1202-B-C-A-E-T(190).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

A plant asset was purchased on January 1 for $100,000 with an estimated salvage value of $20,000 at the end of its useful life. The current year's Depreciation Expense is $10,000 calculated on the...

A small delivery truck was purchased on January 1 at a cost of $25,000. It has an estimated useful life of four years and an estimated salvage value of $5,000. Prepare a depreciation schedule showing...

A plant asset was purchased on January 1 for $ 59200 with an estimated salvage value of $ 15000 at the end of its useful life. The current year's depreciation expense is $ 3400 calculated on the...

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $ 148,000. Over its 4-year useful life, the bus is expected to be...

1. Blue Spruce Corp. purchased a new machine on October 1, 2019, at a cost of $134,000. The company estimated that the machine will have a salvage value of $20,000. The machine is expected to be used...

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 $240,418. Over its 4-year useful life, the bus is expected to be...

View Policies Current Attempt in Progress Yello Bus Lines uses the units - of - activity method in depreciating its buses. One bus was purchased on January 1 , 2 0 2 2 , at a cost of \ ( \ $ 2 3 2 ,...

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $215,150. Over its 4-year useful life, the bus is expected to be...

kindly answer missing parts (b) Prepare a depreciation schedule assuming actual mileage was: 2022, 40,600; 2023, 42.000; 2024, 49,000; and 2025, 31.000. (Round cost per unit to 2 decimal places, e.g....

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $263,569. Over its 7-year useful life, the bus is expected to be...

Consider the following illustrations:

Three equal impedances, 60 + j30 each, are delta-connected to a 230-V rms, three-phase circuit. Another three equal impedances, 40 + j10 each, are wyeconnected across the same circuit at the same...

How does the death benefit feature of an annuity enhance its role in estate planning? It ensures the annuity owner can always access their entire investment. It guarantees that the annuitant's family...

If the price of catfish fell from $13 to $9 per bushel, use Figure 7.7 to determine the (a) Profit-maximizing output. (b) Profit or loss per bushel. (c) Total profit or loss.

Kensington Bike Repair Shop was started on April 1 by L. Depres. A summary of the April transactions follows: April 1 Invested $21,000 to start the repair shop. 2 Purchased equipment for $9,000,...

Lynn Barry started her own consulting firm, Barry Consulting, on June 1, 2014. The following transactions occurred during the month of June: June 1 sold her shares in Big Country Airlines for $7,000,...

Fraser Baker opened Baker's Accounting Service in Winnipeg on September 1, 2014. On September 30, the balance sheet showed Cash $5,700; Accounts Receivable $2,100; Supplies $350; Equipment $7,600;...

An investment will pay $500 in three years, $700 in five years and $1000 in nine years. If your discount rate is 6%, what is the present value of this investment? (Round to the nearest dollar) 4....

Nico Corporation expects to generate Iren cash flows of $200,000 per year for the next five years, Beyond that time, tree cash flows are expected to grow at a constant rate of ft percent per year...

A and B are partners sharing profits in the ratio of 3:1. On 1st April,2001, they admit C into partnership for 1/5 who pays Rs.50,000 as premium privately. On 1st April 2002,they admit D into...