On January $1,$ Year $1,$ City Taxi Company purchased a new taxi cab for $$75,000.$ The cab has an expected salvage value of $$3,300.$ The company estimates that the cab will be driven $200,000$ miles over its life. It uses the units$-$of$-$production method to determine depreciation expense. The cab was driven $57,000$ miles the first year and $87,000$ the second year. What is the amount of depreciation expense reported on the Year $2$ income statement and the book value of the taxi at the end of Year $2,$ respectively? $($Do not round intermediate calculations.$)$

Answer rating: 100% (QA)

To calculate the depreciation expense reported on the Year 2 income statement and the book value of ... View the full answer