Candy Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $125,000. Over its 4-year useful life, the bus is expected to be driven 220,000 miles. Salvage value is expected to be $8,400.
Compute the depreciation cost per unit. (round to 3 decimal places.
Prepare a depreciation schedule assuming actual mileage was: 2017, 50,000; 2018, 65,000; 2019, 51,250; and 2020, 33,750. (Round depreciation cost per unit to 3 decimal places).