Answer:
Prepare a depreciation schedule assuming actual mileage was: 2017, 38,500; 2018, 31,000; 2019, 31,000; and 2020, 42,000. (Round cost per unit to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)
Computation
End of Year
Year
Units of
Activity
×
Depreciation
Cost /Unit
=
Annual
Depreciation
Expense
Accumulated
Depreciation
Book
Value
2017
$
$
$
$
2018
2019
2020
Explanation:
Answer #1
Depreciation cost per unit = ( Cost - Salvage value ) / Expected miles to be driven = ( 215150 - 7100 ) / 142500 1.46 per mile
Computation End of year
Year Units of activity x Depreciation cost / unit = Annual depreciation expense Accumulated depreciation Book value
2017 38500 x 1.46 = 56210 56210 158940
2018 31000 x 1.46 = 45260 101470 113680
2019 31000 x 1.46 = 45260 146730 68420
2020 42000 x 1.46 = 61320 208050 7100
