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Exercise 9-5 (Part Level Submission) Yello Bus Lines uses the units-of-activity method in depreciating its buses....

Exercise 9-5 (Part Level Submission)

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2015, at a cost of $305,082. Over its 4-year useful life, the bus is expected to be driven 206,300 miles. Salvage value is expected to be $8,010.

Prepare a depreciation schedule assuming actual mileage was: 2015, 52,400; 2016, 58,500; 2017, 51,100; and 2018, 44,300. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

Computation

End of Year



Year


Units of
Activity

×


Depreciation
Cost/Unit

=

Annual
Depreciation
Expense


Accumulated
Depreciation


Book
Value

2015

$

$

$

$

2016

2017

2018

0 0
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Answer #1
Year

Units of

Activity

Depreciation cost

Annual depreciation

Expense

Accumulated

Depreciation

Book value
2015 52,400 1.44 75,456 75,456 229,626
2016 58,500 1.44 84,240 159,696 145,386
2017 51,100 1.44 73,584 233,280 71,802
2018 44,300 1.44 63,792 297,072 8010

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