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In recent years, Novak Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for
In recent years, Novak Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is shown as follows. Bus Useful Life in Years 5 1 Acquired 1/1/17 1/1/17 1/1/18 Salvage Value $ 7,000 10,000 8,000 Cost $ 98,300 118,000 88,640 Depreciation Method Straight-line Declining-balance Units-of-activity 2 4 3 4 For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 126,000. Actual miles of use in the first 3 years were 2018, 24,000; 2019, 31,500; and 2020, 30,000. v (al) For Bus #3, calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost per mile
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