Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost   $    per mile           Compute the depreciation for each year. (Round answers to 2 decimal places, e.g. 2,125.50.)     Year 1   Year 2 Depreciation   $     $

College Accounting, Chapters 1-27
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Author:HEINTZ, James A.
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Chapter18: Accounting For Long-term Assets
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Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
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Sheffield Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 152,000 miles. Taxi no. 10 cost $49,520 and is expected to have a salvage value of $2,400. Taxi no. 10 is driven 35,200 miles in year 1 and 25,300 miles in year 2.
 
 
 
 
 
Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciation cost   $
 
 per mile
 
 
 
 
 
Compute the depreciation for each year. (Round answers to 2 decimal places, e.g. 2,125.50.)

   
Year 1
 
Year 2
Depreciation   $
 
  $
 
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