8.7.3

Sheridan Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 148,000 miles. Taxi 10 cost $36,000 and is expected to have a salvage value of $480. Taxi 10 was driven 35,000 miles in 2021 and 20,500 miles in 2022. (a1) Your answer is correct. Calculate depreciable cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost $ .24 per mile e Textbook and Media Attempts: 2 of 3 used (a2) Compute the depreciation for each year. Year 1 Year 2 Depreciation $ $