Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ayayai Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $205,860. Over

image text in transcribed
image text in transcribed
Ayayai Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $205,860. Over its 8-year useful life, the bus is expected to be driven 141,400 miles Salvage value is expected to be $7,900. (a) Compute the depreciable cost per unit. (Round answer to 2 decimal places, eg. 0.50.) Depreciation cost per unit $ per mile Prepare a depreciation schedule assuming actual mileage was: 2022, 28,400; 2023, 34,000; 2024,51,000; and 2025, 28,000. (Round cost per unit to 2 decimal places, es. 15.25 and all other answers to decimal places, eg. 5,275.) Computation Annual Depreciation Expense Units of Activity Depreciation Cost/Unit Accumulat Depreciati Year $ $ $ 2022 2023 2024 2025

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions