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.
Please see attachment for complete details.
Wheeler Bus Lines
Cost of bus $148,000
Salvage value $8,000
Excel file contains calculation of depreciation and depreciation schedule using various method of calculating deprecation.