Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare a depreciation schedule assuming actual mileage was: 2022, 29,900; 2023, 59,000; 2024, 40,000; and 2025, 19,000. Whispering Winds Bus Lines uses the units-of-activity method

Prepare a depreciation schedule assuming actual mileage was: 2022, 29,900; 2023, 59,000; 2024, 40,000; and 2025, 19,000.

image text in transcribedimage text in transcribedimage text in transcribed

Whispering Winds Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $243,161. Over its 7-year useful life, the bus is expected to be driven 147,900 miles. Salvage value is expected to be $8,000. (a) Your answer is correct. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit $ 1.59 per mile Computation Units of Activity Depreciation Cost/Unit Annual Depreciation Expense Year = 2022 ta $ 2023 2024 2025 End of Year Accumulated Depreciation Book Value $ ta

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

Accounting Principles

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

12th edition

1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056

Students also viewed these Accounting questions