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.