Younger Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2008, at a cost of \($168,000.\) Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be \($8,000.\)

Instructions

(a) Compute the depreciation cost per unit.

(b) Prepare a depreciation schedule assuming actual mileage was: 2008, 26,000; 2009, 32,000; 2010, 25,000; and 2011, 17,000.