E9-5
Younger Bus Lines uses the units-of-activity method in depreciating
its buses.
(b) Prepare a depreciation schedule assuming actual mileage was: 2011, 26,000; 2012, 32,000; 2013, 25,000; and 2014, 17,000.
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XACC 291 Week 4 Individual
Exercises and Problems
E9-5 Younger Bus Lines uses the
units-of-activity method in depreciating its buses. One bus was purchased on
January 1, 2011, at a cost of $168,000. Over its 4-year useful life, the bus is
expected to be driven 100,000 miles. Salvage value is expected to be $8,000.
Instructions
(a) Compute the depreciation cost per unit.(b) Prepare a depreciation schedule assuming actual mileage was: 2011, 26,000; 2012, 32,000; 2013, 25,000; and 2014, 17,000.
TUTORIAL PREVIEW
(b)
|
Computation
|
End of Year
|
||||||
|
Year
|
Units of
Activity
|
X
|
Depreciation
Cost /Unit
|
=
|
Annual
Depreciation
Expense
|
Accumulated
Depreciation
|
Book
Value
|
|
2011
|
26,000
|
X
|
$1.60
|
=
|
$41,600
|
$ 41,600
|
$126,400
|
FILE NAME: E9-5 Younger Bus FILE TYPE: doc PRICE:$4
CLICK HERE TO DOWNLOAD THE SOLUTION
