Question: Jerry Englehart Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 120,000 miles. Taxi No.

Jerry Englehart Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 120,000 miles. Taxi No. 10 cost $\$ 24,500$ and is expected to have a salvage value of $\$ 500$. Taxi No. 10 is driven 30,000 miles in Year 1 and 20,000 miles in Year 2. Compute the depreciation for each year.

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