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Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $227,125. Over
Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2022, at a cost of $227,125. Over its 4-year useful life, the bus is expected to be driven 132,500 miles. Salvage value is expected to be $8,500. (a) Your answer is correct. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost per unit $ 1.65 per mile Prepare a depreciation schedule assuming actual mileage was: 2022, 28,500; 2023,49,000; 2024, 27,000; and 2025, 28,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to O decimal places, e.g. 5,275.) Computation End of Year Units of Activity Depreciable Cost/Unit Annual Depreciation Expense Accumulated Depreciation Book Value Year 2022 ta 1.65 $ $ $ 2023 1.65 2024 1.65 2025 1.65
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