Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 157,000 miles. Taxi no. 10 cost $37,000 and is expected to have a salvage value of $730. Taxi no. 10 is driven 31,800 miles in year 1 and 19,100 miles in year 2. Calculate depreciation cost per mile using the unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 157,000 miles. Taxi no. 10 cost $37,000 and is expected to have a salvage value of $730. Taxi no. 10 is driven 31,800 miles in year 1 and 19,100 miles in year 2. Calculate depreciation cost per mile using the unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

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