Question: Freemont Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 145, 300 miles. Taxi no.

 Freemont Taxi Service uses the units-of-activity method in computing depreciation on

Freemont Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 145, 300 miles. Taxi no. 10 cost $38, 180 and is expected to have a salvage value of $700. Taxi no. 10 is driven 32, 380 miles in year 1 and 24, 500 miles in year 2. Calculate depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost $ per unit. Compute the depreciation for each year. (Round computations and final answers to 2 decimal places, e.g. $2, 125.50.)

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