Financial Accounting
In recent years, Avery 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
|
1/1/13
|
$98,300
|
$5,300
|
5
|
Straight-line
|
|
2
|
1/1/13
|
121,000
|
11,700
|
5
|
Declining-balance
|
|
3
|
1/1/14
|
80,340
|
8,700
|
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 119,400. Actual miles of use in the first 3 years were: 2014, 26,300; 2015, 34,300; and 2016, 29,600.
Calculate depreciation expense per mile under units-of-activity method.