Question: Speedy Taxi Service uses the units-of-production method to calculate depreciation on its taxicabs. Each cab is expected to be driven 325,000 km over its life.

Speedy Taxi Service uses the units-of-production method to calculate depreciation on its taxicabs. Each cab is expected to be driven 325,000 km over its life. Taxi 10 was purchased on March 1, 2017, for $33,000 and is expected to have a residual value of $500. Taxi 10 was driven 125,000 km in 2017 and 105,000 km in 2018. Speedy Taxi Service has a December 31 year end. Calculate the depreciation expense on Taxi 10 for 2017 and 2018.

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