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 $205,860. Over its8-year useful life, the bus is expected to be driven141,400miles. Salvage value is expected to be $7,900.

(a)

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

Depreciation cost per unit$________per mile