Calculate depreciation expense per mile

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Question - In Recent year, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning   the buses is summarized as follows.

Bus

Acquired

Cost

Salvage Value

Useful Life in Years

Depreciation Method

1

1/1/15

$99,400

$7,500

4

Straight-line

2

1/1/15

118,000

10,000

4

Declining-balance

3

1/1/16

82,400

8,000

4

Units-of-activity

For the declining method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 120,000. Actual miles of use in the first 3 years were 2016, 27,000; 2017, 31,500; and 2018, 31,500.

Required -  For Bus#3, calculate depreciation expense per mile under units-of-activity method.

Reference no: EM131590712

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