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.)
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