Financial Accounting: E9-18 Jayhawk Bus Lines uses the units-of-activity method
Financial Accounting E9-18 Jayhawk Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2010, at a cost of $136,000. Over its 4-year useful life, the bus is expected to be driven 160,000 miles. Salvage value is expected to be $8,000.
Instructions: a. Compute the depreciation cost per unit. (Round answer to 2 decimal places, e.g. 0.20.) b. Prepare a depreciation schedule assuming actual mileage was: 2010, 40,000; 2011, 52,000; 2012, 41,000; and 2013, 27,000. (Round depreciation cost per unit to 2 decimal places, e.g. 0.20 and all other answers to 0 decimal places, e.g. 25,330.)