On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $90,000. The cab has an expected salvage value of $38,000. 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 45,000 miles the first year and 102,000 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?

		$26,520 and $13,780.
		$26,520 and $51,780.
		$45,900 and -$14,150.
		$45,900 and $23,850