Kimmel, Financial Accounting, 8e CALCULATOR PRINTER VERSION ·BACK Whippet Bus Li

Question

Kimmel, Financial Accounting, 8e CALCULATOR PRINTER VERSION ·BACK 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 $128,00 Over its 4-year useful life, the bus is expected to be driven 218,000 miles. Salvage value is expected to be $8,100. Your answer is correct. Compute the depreciation cost per unit. (Round answer to 3 decimai places, e.g. 6.251) Depreciation cost per unit OAPPLIED ED SKILLS 2 Your anseeris partilily correct. Ty sgain. depreciation cost per unit to 3 decimal places, e.g. 0.125 and other answers to 0 decimal places, o.g. 125) Years Units of Activity xDepreciation Cost/Unit Annual Depreclation Expense Ace a 2017, 51,200; 2018, 66,560; 2019, 52,480 and 2020, 34,560. (Round End of Year Accumulated Depreciation Book Value 2017 2019 2020 Question Attemptsi 2 of 5 used LAVE FOR LATEA SUBHET ANSWER 8 9 2

Explanation / Answer

Depreciation schedule :

Computation End of year Year Unit of activity * Depreciation per unit = Depreciation expense Accumlated depreciation Book value 2017 51200 * 0.55 = 28160 28160 99840 2018 66560 * 0.55 = 36608 64768 63232 2019 52480 * 0.55 = 28864 93632 34368 2020 34560 * 0.55 = 19008 112640 15360

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