Question
Flounder Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $260,752. Over
Flounder Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2020, at a cost of $260,752. Over its 6-year useful life, the bus is expected to be driven 161,700 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 schedule assuming actual mileage was: 2020, 28,700; 2021, 56,000; 2022, 42,000; and 2023, 35,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)
A) Depreciation cost per unit is 1.56 per mile
B) I can not figure out how to get the answer to the Accumulated Depreciation amount. This is what I have done so far. Thank you and can you show how you got those numbers
Year | Units of Activity | Depreciation | Annual Depreciation Exp | Accum. Depreciation | Book Value |
2020 | 28700 | 1.56 | 44772 | 44772 | 215980 |
2021 | 56000 | 1.56 | 87360 | 132132 | 128620 |
2022 | 42000 | 1.56 | 65520 | 63100 | |
2023 | 35000 | 1.56 | 54600 | 8500 | |
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