Copacabana Bus Lines uses the units of activity method in depreciating its

Copacabana 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$145,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Residual value is expected to be R$15,000.

Instructions

(a) Compute the depreciable cost per unit.

(b) Prepare a depreciation schedule assuming actual mileage was 2017, 27,000; 2018, 32,000; 2019, 24,000; and 2020, 17,000.

Copacabana Bus Lines uses the units of activity method in depreciating its



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