Speedy Taxi Service uses the units-of-production method in calculating depreciation on its taxicabs. Each cab is expected

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Speedy Taxi Service uses the units-of-production method in calculating depreciation on its taxicabs. Each cab is expected to be driven 550,000 km. Taxi 10 cost $38,950 and is expected to have a residual value of $4,300. Taxi 10 is driven 90,000 km in 2020, and 135,000 km in 2021. Calculate

(a) The depreciable amount per kilometre (use three decimals),

(b) The depreciation expense for 2020 and 2021.

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Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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