Exercise 9-5Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200.Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)Depreciation cost per unitsLINK TO TEXTYear2017Prepare a depreciation schedule assuming actual mileage was: 2017, 48,500; 2018, 55,000; 2019, 51,000; and 2020, 36,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)ComputationEnd of Year201820192020per mileUnits ofActivityDepreciationCost/UnitVIDEO: APPLIED SKILLSAnnualDepreciationExpenseAccumulatedDepreciationBookValue

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Description: Exercise 9-5Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is e

The Depreciated cost of a fixed asset is its value less the total cumulative depreciation that has…

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Exercise 9-5 Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299.818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit LINK TO TEXT Year 2017 Prepare a depreciation schedule assuming actual mileage was: 2017, 48,600; 2018, 55,000; 2019, 51,000; and 2020, 36,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.) End of Year 2018 2019 2020 Units of Activity per mile Computation Depreciation Cost/Unit VIDEO: APPLIED SKILLS Annual Depreciation Expense Accumulated Depreciation Book Value

Exercise 9-5 Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299.818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200. Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost per unit LINK TO TEXT Year 2017 Prepare a depreciation schedule assuming actual mileage was: 2017, 48,600; 2018, 55,000; 2019, 51,000; and 2020, 36,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.) End of Year 2018 2019 2020 Units of Activity per mile Computation Depreciation Cost/Unit VIDEO: APPLIED SKILLS Annual Depreciation Expense Accumulated Depreciation Book Value

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Exercise 9-5
Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $299,818. Over its 4-year useful life, the bus is expected to be driven 190,600 miles. Salvage value is expected to be $8,200.
Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)
Depreciation cost per units
LINK TO TEXT
Year
2017
Prepare a depreciation schedule assuming actual mileage was: 2017, 48,500; 2018, 55,000; 2019, 51,000; and 2020, 36,000. (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
2018
2019
2020
per mile
Units of
Activity
Depreciation
Cost/Unit
VIDEO: APPLIED SKILLS
Annual
Depreciation
Expense
Accumulated
Depreciation
Book
Value

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