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 $128,000. Over its 4-year useful life, the bus is expected to be driven 213,750 miles. The salvage value is expected to be $8,300. Compute the depreciation cost per unit.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
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Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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Accounting compute the depreciation cost per unit

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 $128,000. Over its 4-year useful
life, the bus is expected to be driven
213,750 miles. The salvage value is
expected to be $8,300.
Compute the depreciation cost per unit.
Transcribed Image Text: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 $128,000. Over its 4-year useful life, the bus is expected to be driven 213,750 miles. The salvage value is expected to be $8,300. Compute the depreciation cost per unit.
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