Silver Star Transit uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2023, at a cost of $240,500. Over its 6-year useful life, the bus is expected to be driven 150,000 miles. Salvage value is expected to be $12,500. Compute the depreciable cost per unit. (Round the answer to 2 decimal places.)

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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Silver Star Transit uses the units-of-activity method in depreciating its buses. One bus was
purchased on January 1, 2023, at a cost of $240,500. Over its 6-year useful life, the bus is
expected to be driven 150,000 miles. Salvage value is expected to be $12,500. Compute the
depreciable cost per unit. (Round the answer to 2 decimal places.)
Transcribed Image Text:Silver Star Transit uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2023, at a cost of $240,500. Over its 6-year useful life, the bus is expected to be driven 150,000 miles. Salvage value is expected to be $12,500. Compute the depreciable cost per unit. (Round the answer to 2 decimal places.)
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