Exercise 10-5

Exercise 10-5 Yello Bus Lines uses the units-of-activity method in depreciating is buses. One bus was purchased on January 1, 2017, at a cost of $227,125. Over its 7-year useful life, the bus is expected to be driven 132,500 miles. Salvage value is expected to be $8,500. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit per mile Prepare a depreciation scheduie assuming actual mileage was: 2017, 28,500; 2018, 49,000; 2019, 27,000; and 2020, 28,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to decimal places, e.g. 5,275.) Computation End of Year Annual Depreciation xpense Units of Depreciation Cost /Unit Accumulated Depreciation Book Year Activity Value 2017 2018 2019 2020