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    Wheeler Bus Lines uses the units-of-activity method in depreciating its buses. One bus
    was purchased on January 1, 2006, at a cost of $148,000. Over its 4-year useful life, the bus is
    expected to be driven 100,000 miles. Salvage value is expected to be $8,000.
    (a) Compute the depreciation cost per unit.
    (b) Prepare a depreciation schedule assuming actual mileage was: 2006, 26,000; 2007, 32,000;
    2008, 25,000; and 2009, 17,000.
    Compute depreciation under units-of-activity method.

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    Wheeler Bus Lines
    Cost of bus $148,000
    Salvage value $8,000
    Expected ...

    Solution Summary

    Excel file contains calculation of depreciation and depreciation schedule using various method of calculating deprecation.