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Jayhawk Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2010, at a cost of $189,040. Over
Jayhawk Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2010, at a cost of $189,040. Over its 4-year useful life, the bus is expected to be driven 222,400 miles. Salvage value is expected to be $11,120. (a) Compute the depreciation cost per unit Prepare a depreciation schedule assuming actual mileage was: 2010, 55,600; 2011, 72,280; 2012, 56,990; and 2013, 37,530. (Round depreciation cost per unit to 2 decimal places, e.g. 0.20 and all other answers to 0 decimal places, e.g. 25,330.) Computation End of Year Years Units of Activity Depreciation Cost/Unit = Annual Depreciation Expense Accumulated Depreciation Book Value 2010 2011 2012 2013
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