Hey guys, could someone finish part b? I'm confused! Thanks, I'll be sure to rate.
Exercise 9-19 (Part Level Submission): 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 $117,000. Over its 4-year useful life, the bus is expected to be driven 210,000 miles. The salvage value is expected to be $7,800.
(a) Compute the depreciation cost per unit. (Round answer to 3 decimal places, e.g. 6.251)
Depreciation cost per unit: 0.52
(b) Prepare a depreciation schedule assuming actual mileage was: 2017 - 46,800; 2018 - 60,840; 2019 - 47,970; and 2020 - 31,590. (Round depreciation cost per unit to 3 decimal places, e.g. 0.125 and other answers to 0 decimal places, e.g. 125)
Computation:
End of Year | Units of Activity | Depreciation Cost/Unit | Annual Depreciation Expense | Accumulated Depreciation
2017 | 46,800 | 0.52 | $24,336 | $24,336
2018 | 60,840 | 0.52 | $31,637 | $55,973
2019 | 47,970 | 0.52 | $24,944 | $80,917
2020 | 31,590 | 0.52 | $16,427 | $97,344