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...

See similar textbooks

Similar questions

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 $ $
Blue Spruce Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 140,000 miles. Taxi no. 10 cost $45,000 and is expected to have a salvage value of $200. Taxi no. 10 is driven 28,000 miles in year 1 and 18,400 miles in year 2. a. Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places) b. Compute the depreciation for each year. (Round answers to 2 decimal places)
Concord 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 $73,750 and is expected to have a salvage value of $3,100. Taxi no. 10 was driven 32,900 miles in 2022 and 21,200 miles in 2023. (a1) Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost $ eTextbook and Media Save for Later (a2) Compute the depreciation for each year. Depreciation $ 2022 per mile 2023 Attempts: 0 of 5 used Submit Answer
A utility vehicle purchased by Knox industries should last 110,000 miles . the accusation cost was 21,200 and the salvage value is 1,913. Using the units of production depreciation method given the annual usage information calculate the accumulated depreciation at the end of year to round your depreciation per unit to three decimal places run your answer to the nearest cent. year one 22,029. Your two 22,724. Year 3 23,420. year 4 23,188. Answer key A.3,976.70 B.4,098.50 C.7,831.78 D.13,368.23
Vaibh
Show detailed answer with Formulas for upvotes.
Montello Inc. purchases a delivery truck for $23,051. The truck has a salvage value of $4,562 and is expected to be driven for 132,141 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 20,068 miles. Calculate the annual depreciation expense. Round to the nearest penny, two decimal places.
Lisa Miller of Basket Wonders (BW) is calculating the depreciation on a machine with a depreciable basis of $50,000, an 8-year useful life, and Scrap Value is $2,000. Please, calculate depreciation by straight line method, Sum of the year’s digit method, and Double Declining Balance (DDB) method.
A company that manufactures pulse Doppler insertion flow meters uses the Straight Line method for book depreciation purposes. Newly acquired equipment has a first cost of $160,000 with a 3-year life and a $19,000 salvage value. Determine the depreciation charge and a book value for year 2. The depreciation charge is $ The book value for year 2 is determined to be $
Subject - account Please helo me. Thankyou.
A truck acquired at a cost of $195,000 has an estimated residual value of $11,250, has an estimated useful life of 35,000 miles, and was driven 2,800 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost (b) The depreciation rate per mile (c) The units-of-activity depreciation for the year
Montello Inc. purchases a delivery truck for $12,000. The truck has a salvage value of $2,000 and is expected to be driven for 100,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expens