Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $215,150. Over

image text in transcribed

image text in transcribed

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 $215,150. Over its 4-year useful life, the bus is expected to be driven 142,500 miles. Salvage value is expected to be $7,100. 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: 2020,38,500; 2021, 31,000; 2022, 31,000; and 2023, 42,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.) End of Year Depreciation Cost/Unit Annual Depreciation Expense Accumulated Depreciation Book Value $ $ $ 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 $215,150. Over its 4-year useful life, the bus is expected to be driven 142,500 miles. Salvage value is expected to be $7,100. 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: 2020,38,500: 2021, 31,000; 2022, 31,000; and 2023, 42,000. (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 Units of Activity Depreciation Cost/Unit Annual Depreciation Expense Accumu Depreci Year 2020 $ $ $ 2021 2022 2023

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_2

Step: 3

blur-text-image_3

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

Fundamental Managerial Accounting Concepts

Authors: Thomas Edmonds

10th Edition

126410068X, 9781264100682

More Books

Students also viewed these Accounting questions