Question

Ivanhoe Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $140,000. Over its 4-year useful life, the bus is expected to be driven 240,000 miles. Salvage value is expected to be $9,200. . Your answer is incorrect. Compute the depreciation cost per unit. (Round answer to 3 decimal places, e.g. 6.251) Depreciation cost per unit $ e Textbook and Media X Your answer is incorrect. Prepare a depreciation schedule assuming actual mileage was: 2022, 56,000; 2023, 72,800; 2024, 57,400; and 2025, 53,800. (Round depreciation cost per unit to 3 decimal places, e.g. 0.125 and other answers to o decimal places, e.g. 125) Computation End of Year Years Units of Activity * Depreciation Cost/Unit = Annual Depreciation Expense Accumulated Depreciation Book Value 2022 2023

if you could also show how to do the years 2024 and 2025

Answer 1

nswer: salvage value Cost unt= ( depieciation cost pen Expecled driven mles $140,000- $9200 240,000mile = $0. 5u5 pen unit ( deprecia tio schedule Annual depieciatios Ex perie AcCIudaled Depreciaton (ostlunvt Unuts of Activb Book value yeas deprecio bro 109,480 30,520 $30,20 $6600 2022 $39676 69,804 30, 196 x o.sus 2023 72800 $31283 38,5 O.SUS 20y SHOO $29,321 $130, o x $0.Sus S3800 $9200 205