Question: Pack in Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 150,000 miles. Taxi 10

Pack in Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 150,000 miles. Taxi 10 cost $23,816 and is expected to have a salvage value of $512. Taxi 10 was driven 27,480 miles in 2009 and 19,814 miles in 2010. Compute the depreciation for each year. First year depreciation Second year depreciation

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