Windsor Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of R$245,210. Over its 7-year useful life, the bus is expected to be driven 170,600 miles. Residual value is expected to be R$14,900. "(a) Your answer is correct. Compute the depreciable cost per unit. (Round answer t to 2 decimal places, e.g. 9.50.) Depreciation cost per unit Rsl.35 per mile Attempts: 1 of 2 used Maria 1181 (b) Prepare a depreciation schedule assuming actual mileage was 2017, 42,900; 2018, 49,500; 2019, 42,300; and 2020, 35,900. (Round answers to 0 decimal places, e.g. 2,125 except Depreciation Cost /Unit.) reen Sh 12 22 End of Year Computation Annual Book Depreciation Expense Accumulated Depreciation Cost /Unit Units of Activity Value Depreciation Year R$ RS R$ 2017 R$ nen Shor 12 22.26 2018 2019 2020
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Windsor Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of R$245,210. Over its 7-year useful life, the bus is expected to be driven 170,600 miles. Residual value is expected to be R$14,900. "(a) Your answer is correct. Compute the
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