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Whippet Bus Lines uses the units of activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of
Whippet Bus Lines uses the units of activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of exist125,000. Over its 4-year useful life, the bus is expected to be driven 220,000 miles. Salvage value is expected to be exist8, 400. Compute the depreciation cost per unit. Prepare a depreciation schedule assuming actual mileage was: 2017, 50,000: 2018, 65,000: 2019, 51, 250: and 2020, 33, 750
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