On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $75,000. The cab has an expected salvage value of $3,000. 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 57,000 miles the first year and 59,600 the second year. What would be the depreciation expense reported on the Year 2 income statement and the book value of the taxi, respectively, at the end of Year 2?

Multiple Choice

$21,936 and $30,094.

$21,936 and $32,094.

$21,456 and $33,024.

$21,456 and $31,024.