Exercise 9-19 Whippet Bus Lines uses the units-of-activity method in depreciatin

Question

Exercise 9-19 Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $150,000. Over its 4- year useful life, the bus is expected to be driven 245,000 miles. Salvage value is expected to be $7,900. Compute the depreciation cost per unit. (Round answer to 3 decimal places, e.g. 6.251) Depreciation cost per unit LINK TO TEXT VIDEO: APPLIED SKILLS Prepare a depreciation schedule assuming actual mileage was: 2017, 60,000; 2018, 78,000; 2019, 61,500; and 2020, 40,500. (Round depreciation cost per unit to 3 decimal places, e.g. 0.125 and other answers to O decimal places, e.g. 125) Computation End of Year Years 2017 2018 2019 2020 Units of Activity x Depreciation cost/unit = Annual Depreciation Expense Accumulated Depreciation Book Value Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEO: APPLIED SKIL

Explanation / Answer

Cost = 150,000

Salvage value = 7,900

Total expected miles = 245,000

Depreciation cost per unit = (cost - salvage value) / total expected miles

Depreciation cost per unit 0.58 [(150,000-7,900)/245,000]

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.