Question: Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 144, 583 miles. Taxi no.10
Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 144, 583 miles. Taxi no.10 cost $35,000 and is expected to have a salvage value of $300. Taxi no.10 is driven 29, 940 miles in year 1 and 21, 650, miles in year 2. Calculate depreciation expense per mile using unit of activity method. (Round answer to 2 decimal places, e.g., 0.50.) Depreciation expense $ _____________ per mile
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