Pack in Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs

Pack in Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 150,000 miles. Taxi 10 cost $27,500 and is expected to have a salvage value of $500. Taxi 10 was driven 28,000 miles in 2011 and 30,000 miles in 2012.

Required:

Compute the depreciation for each year

 

 

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