Question: Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2010, at a cost of $168,000. Over

Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2010, at a cost of $168,000. 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 depreciation cost per unit.

(b) Prepare a depreciation schedule assuming actual mileage was: 2010, 26,000; 2011, 32,000; 2012, 25,000; and 2013, 17,000.

Step by Step Solution

★★★★★

3.45 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Depreciation cost per unit is 160 per mile 168000 8000 100000 b Co... 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)

47-B-A-I-A (188).docx

120 KBs Word File

Students Have Also Explored These Related 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 big organization decides to construct new plants to produce products and satisfy customers demand in five regions while minimizing the relevant costs. The fixed costs, variable costs (production...

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...

5. Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2010, at a cost of $168,000.Over its 4-year useful life, the bus is expected to...

Problem One: On March 1, 2019, Mark Company acquired real estate on which it planned to construct a small office building. The company paid $75,000 in cash. An old warehouse on the property was razed...

Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2008, at a cost of $$168,000.$ Over its 4-year useful life, the bus is expected to...

Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2008, at a cost of $168,000. Over its 4-year useful life, the bus is expected to be...

E10-5 Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2010, at a cost of $168,000. Over its 4-year useful life, the bus is expected...

Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2012, at a cost of $168,000. 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...

(a) Explain why the incidence matrix for a disconnected graph can be written in block diagonal matrix form under an appropriate labeling of the vertices. (b) Show how to label the vertices of the...

Consider the following problem. Maximize Z = 8x1 + 4x2 + 6x3 + 3x4 + 9x5, Subject to And x1 0, j = 1,.,5. You are given the facts that the basic variables in the optimal solution are x 3 , x 1 , and...

Z-2 QUESTION 2 OF 8 What are debits and credits used for? Choose only ONE best answer. A To increase assets and decrease liabilities B To record business transactions C To calculate net income CONFIRM

1. Show that B is an inverse of A if A G) - ( 1 1 1 2 and B = 1 1 1 1 | 2

Surf n Turf Limited is involved in the research and development (R&D) of a new type of three-finned surfboard. For this R&D initiative, the company has incurred the following expenditure: a)....

What is working principle of hydraulic ram, explain.

Anna is a graduate accounting student. She is the recipient of a $1,000 scholarship from the university. Anna also works as a part-time teaching assistant for which she is paid $3,000 per calendar...

Complete the truth table for the following sequential circuit X D Q Q' JQ K Q' Description B ABXAB 0 0 0 0 1 0 1 0 0 Next state 011 100 101 110 1 1 1

Krause Industries balance sheet at December 31, 2013, is presented below. Additional information accumulated for the budgeting process is as follows. Budgeted data for the year 2014 include the...

Mercer Farm Supply Company manufactures and sells a fertilizer called Basic II. The following data are available for preparing budgets for Basic II for the first 2 quarters of 2014. 1. Sales: quarter...

Year Cash Flow 0 $ 18,400 1 10,700 2 9,600 3 6,100 What is the profitability index for the set of cash flows if the relevant discount rate is 11 percent? (Do not round intermediate calculations and...

Oregon Ducks, Inc. is considering buying licenses for 12 megahertz of wireless spectrum in the 700 MHz range, which is suitable for delivering television to mobile phones. The 700 MHz signals can...

In 1896 , the first Green Jacket Golf Championship was held. The winner's prize money was $199 In 2020, the winner's check was $2,430,000. a. What was the annual percentage increase in the winner's...