Question: Two part question Explain Answer Please Depreciation Expense: Units-of-Activity City Taxi purchases a new taxi cab for $25,000. The cab has an estimated salvage value

Two part question Explain Answer Please

Depreciation Expense:

Units-of-Activity City Taxi purchases a new taxi cab for $25,000. The cab has an estimated salvage value of $1,000 and is expected to be driven for approximately 120,000 miles over its useful life of five years.

Required:

a. Calculate the depreciation expense per mile. Round your answer to two decimal places.

b. Prepare a deprecation schedule assuming that the actual miles driven for years one through five were as follows: 25,000; 27,000; 21,000; 28,000; and 19,000. Deprecation Schedule Year, Depreciation Expense, Accumulated Depreciation, Net Book Value

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