On January 1, Year 1, City Taxi Company purchased a new taxicab for $81,000. The cab has an expected salvage value of $3,500. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 63,000 miles the first wear and 93,000 the second year. What is the amount of depreciation expense reported on the Year 2 income statement and the book value of the taxi at the end of Year 2, respectively? (Do not round intermediate calculations.) Multiple Choice $22,785 and $42,780 $21320 and $39,280 $37665 and $17,820 $37,665 and $14,320 On January 1, Year 1, City Taxi Company purchased a new taxicab for $81,000. The cab has an expected salvage value of $3,500. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 63,000 miles the first wear and 93,000 the second year. What is the amount of depreciation expense reported on the Year 2 income statement and the book value of the taxi at the end of Year 2, respectively? (Do not round intermediate calculations.) Multiple Choice $22,785 and $42,780 $21320 and $39,280 $37665 and $17,820 $37,665 and $14,320