Younger Bus Lines uses the units-of-activity method in depreciating its buses. O

Question

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 driven 100,000 miles. Salvage value is expected to be $8,000.


Compute the depreciation cost per unit. (Round answer to 2 decimal places, e.g. 10.50.)

$



Complete the depreciation schedule assuming actual mileage was: 2012, 26,000; 2013 32,000; 2014 25,000; and 2015 17,000.



End of Year

Year


Annual
Depreciation
Expense


Accumulated
Depreciation


Book
Value
2012 $ $ $
2013
2014
2015

Explanation / Answer

Hi, If you like my answer rate me first...that way only I can earn points. Thanks Per mile depreciation = ($168000 - $8000)/100000 = $1.60/mile 2012 Annual Depreciation Expense = $1.60*26000 = $41600 Accumulated Depreciation = $41600 Book Value = $126,400 2013 Annual Depreciation Expense = $1.60*32000 = $51200 Accumulated Depreciation = $92,800 Book Value = $75,200 2014 Annual Depreciation Expense = $1.60*25000 = 40000 Accumulated Depreciation = $132,800 Book Value = $35200 2015 Annual Depreciation Expense = $1.60*17000 = $27200 Accumulated Depreciation = $160000 Book Value = $8000

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