In recent years, Sonya 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 below.
| Bus |
|
Acquired |
|
Cost |
|
Salvage
Value |
|
Useful Life
in Years |
|
Depreciation
Method |
| 1 |
|
1/1/10 |
|
$ 111,400 |
|
$ 7,300 |
|
5 |
|
Straight-line |
| 2 |
|
1/1/10 |
|
224,000 |
|
11,100 |
|
4 |
|
Declining-balance |
| 3 |
|
1/1/11 |
|
75,895 |
|
8,300 |
|
5 |
|
Units-of-activity |
For the declining-balance method, the company uses the double-declining rate. For the units-ofactivity method, total miles are expected to be 122,900 . Actual miles of use in the first 3 years were: 2011, 23,400 ; 2012, 33,300 ; and 2013, 31,900.
Calculate depreciation expense per mile under units-of-activity method.