Calculate depreciation expense per mile under-of-activity

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Question - In recent years, Avery Transpiration purchased three used buses. Because of frequent turnover in 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

1/1/13

$98,500

$7,100

4

Straight-line

2

1/1/13

113,000

10,100

5

Declining-balance

3

1/1/14

71,000

9,100

4

Units-of-activity

For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 123,800. Actual miles of use in the first 3 years were: 2014, 27,400; 2015, 31,400; 2016, 32,300.

Required - Calculate depreciation expense per mile under-of-activity method.

Reference no: EM131749555

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