BACK NEXT Brief Exercise 9-14 Kwik Taxi Service uses the units-of-activity metho

Question

BACK NEXT 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 161,000 miles. Taxi 10 cost $22,000 and is expected to have a salvage value of $600. Taxi 10 was driven 30,000 miles in 2016 and 34,300 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 o decimal places, e.g. 125.) 2016 2017 Depreciation expense s LINK TO TEXT Question Attempts: 0 of 2 usedSAVE FOR LATER A Division of Wiley & Sons, Inc. All Rights Rese

Explanation / Answer

a) Depreciable cost = (22000-600) = 21400

Depreciable per unit = (22000-600)/161000 = 0.13 per unit

b) 2016 dep = (0.13*30000) =3900

2017 dep = (0.13*34300) = 4459

Note: Each question need seprately submission

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