Reference no: EM132695431
In recent years, Sarasota 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 1/1/18 $ 99,300 $ 7,500 4 Straight-line
2 1/1/18 126,000 11,500 4 Declining-balance
3 1/1/19 91,100 8,500 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 118,000. Actual miles of use in the first 3 years were 2019, 27,000; 2020, 34,500; and 2021, 32,500.
Problem 1: Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)
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