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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
