Exerdise 9-19 (Part Level Submission) Whippet Bus Unes uses the units-of-actlvit
ID: 2514207 • Letter: E
Question
Exerdise 9-19 (Part Level Submission) Whippet Bus Unes uses the units-of-actlvity method in depredating i Its buses. Cne bus was purchased on January 1, 2017, at a cost of $131,000. Over lts 4-year useful ife, the bus Is expected to be driven 235,000 miles. Salvage value ls expected to be $7,100 Compute the depreciation cost per unit. (Round answer to 3 decimal places, e.g. 6.251) Deprediation cost per unit Attempts: 0 of 3 used SAVE FOR LATLR SUBMIT ANSWER ? (b) Prepare a 0; and 2020, 35,370. 3 decinnal 400; 201 ansivers to o nlaces, e.g. 125) Computation End of Year units of Activity x Depreciation cost/unit = Annilal ntion Accumulnted Depreciation Rook Vale Years 2017 2018 2019Explanation / Answer
(a) Depreciation cost per unit
Depreciation cost per unit = (Cost – Salvage Value) / Actual Miles
= ($131000 - $7100 ) / 236000 Miles
= $ 0.525 per mile
(b) Depreciation Schedule
Year
Units of Activity
Depreciation cost / unit
Annual Depreciation
Accumulated Depreciation
Book Value
2017
52400
$0.525
27510
27510
103490
2018
68120
$0.525
35763
63273
67727
2019
53710
$0.525
28198
91471
39529
2020
35370
$0.525
18569
110040
20960
110040
Year
Units of Activity
Depreciation cost / unit
Annual Depreciation
Accumulated Depreciation
Book Value
2017
52400
$0.525
27510
27510
103490
2018
68120
$0.525
35763
63273
67727
2019
53710
$0.525
28198
91471
39529
2020
35370
$0.525
18569
110040
20960
110040
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