Question: Speedy Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 141,470 miles. Taxi 10 cost
Speedy Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 141,470 miles. Taxi 10 cost $25,930 and is expected to have a salvage value of $610. Taxi 10 was driven 28,240 miles in 2013 and 31,270 miles in 2014.
a)Determine the depreciation cost. (Round answers to 2 decimal places, e.g. 1.25.)
b)Compute the depreciation for each year. (Round answers to 0 decimal places, e.g. 125.)
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