Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 9-05 a-b Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost

image text in transcribed
image text in transcribed
Exercise 9-05 a-b Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $148,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $8,000. Your answer is correct. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit per mile Your answer is partially correct. Try again. Prepare a depreciation schedule assuming actual mileage was: 2020, 26,000; 2021, 32,000; 2022, 25,000; and 2023, 17,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.) Computation End of Year Units of Activity Annual Depreciation Expense Depreciation Cost/Unit * Year Accumulated Depreciation = Book Value x 26000 1.4 36400 L 36400 x 32000 44800 4 4800 2022 T 25000 35000 3500 2023 T 17000 23800 23800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Pioneers Of Critical Accounting A Celebration Of The Life Of Tony Lowe

Authors: Jim Haslam, Prem Sikka

1st Edition

113754211X, 9781137542113

More Books

Students also viewed these Accounting questions

Question

=+ What is Pats EVwPI?

Answered: 1 week ago