Brief Exercise 9-14 Kwik Taxi Service uses the units-of-activity method in compu

Question

Brief Exercise 9-14 Kwik Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 141,000 miles. Taxi 10 cost $25,200 and is expected to have a salvage value of $500. Taxi 10 was driven 28,000 miles in 2016 and 30,900 miles in 2017 Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) Depreciable cost per unit LINK TO TEXT Compute the depreciation for each year. (Round answers to 0 decimal places, e.g. 125.) 2016 2017 Depreciation expense s

Explanation / Answer

Depreciable cost = (25200-500)/141000= 0.18 per unit Depreciation expense: 2016 5040 =28000*0.18 2017 5562 =30900*0.18

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