Question

Last year, Serge Baich bought an automobile for $28,000 to use in his taxi business. He expected to drive the vehicle for 140,000 miles before disposing of it for $3,500. Serge drove 3,200 miles this week and 2,800 miles last week.

Required
a. Determine the total cost of vehicle depreciation this week and last week. Round your figures to 3 decimal points.
b. Explain why allocating the vehicle cost would or would not be relevant to decision making.



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  • CreatedFebruary 07, 2014
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