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Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $135,800. Over

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $135,800. Over its 4-year useful life, the bus is expected to be driven 92,000 miles. Salvage value is expected to be $7,000.

depreciable cost per unit is 1.4

Prepare a depreciation schedule assuming actual mileage was: 2019, 24,000; 2020, 28,000; 2021, 23,000; and 2022, 17,000. (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

End of Year

Year

Units of Activity

Depreciable Cost /Unit

=

Annual Depreciation Expense

Accumulated Depreciation

Book Value

2019
2020
2021
2022

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