Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January

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Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2025, at a cost of $100,000. 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.
b. Prepare a depreciation schedule assuming actual mileage was 2025, 40,000; 2026, 52,000; 2027, 41,000; and 2028, 27,000.

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Accounting Tools For Business Decision Making

ISBN: 9781119791058

8th Edition

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

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