Brief Exercise 10-8

On January 1, 2017, the Morgantown Company ledger shows Equipment $68,000and Accumulated DepreciationEquipment $9,700. The depreciation resulted from using the straight-line method with a useful life of12years and salvage value of $2,100. On this date, the company concludes that the equipment has a remaining useful life of only5years with the same salvage value.

Compute the revised annual depreciation.

Revised annual depreciation$ _______

Exercise 10-5 (Part Level Submission)

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $195,380. Over its5-year useful life, the bus is expected to be driven133,700miles. Salvage value is expected to be $8,200.

(a)

Compute the depreciable cost per unit.(Round answer to 2 decimal places, e.g. 0.50.)

Depreciation cost per unit$ -______

per mile

Exercise 10-7 (Part Level Submission)

Linton Company purchased a delivery truck for $27,000on January 1, 2017. The truck has an expected salvage value of $1,300, and is expected to be driven100,000miles over its estimated useful life of9years. Actual miles driven were13,400in 2017 and13,900in 2018.

(a1)

Calculate depreciation expense per mile under units-of-activity method.(Round answer to 2 decimal places, e.g. 0.50.)

Depreciation expense$ ________

per mile