Kwik Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected

Question:

Kwik 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 of $500. Taxi 10 was driven 32,000 miles in 2016 and 33,000 miles in 2017. Compute the depreciation for each year?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...