# Speedy Taxi Service uses the units-of-production method in calculating depreciation on its taxicabs. Each cab is expected to be driven 550,000 km. Taxi 10 cost $38,950 and is expected to have a residual value of $4,300. Taxi 10 is driven 90,000 km in 2023 and 135,000 km in 2024. Calculate (a) The depreciable amount per kilometer (use three decimals). (b)

Chapter 1, Brief Exercises #8

Speedy Taxi Service uses the units-of-production method in calculating depreciation on its taxicabs. Each cab is expected to be driven 550,000 km. Taxi 10 cost $38,950 and is expected to have a residual value of $4,300. Taxi 10 is driven 90,000 km in 2023 and 135,000 km in 2024. Calculate

(a) The depreciable amount per kilometer (use three decimals).

(b) The depreciation expense for 20.

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