Question
On October 1, 2024, Martinez Auto Rentals purchases a new automobile for $29,700 to add to its fleet of rental cars. The automobiles are
On October 1, 2024, Martinez Auto Rentals purchases a new automobile for $29,700 to add to its fleet of rental cars. The automobiles are rented out on a short-term basis with rental fees calculated based on distance driven by the customer. Martinez's policy is to sell and replace a car after the earlier of three years, or 80.000 kilometres. The average selling price of the used cars is $8.900. This particular car was driven 8,900 km in 2024, 41,000 km in 2025, and 23,800 km in 2026 Calculate 2024 and 2025 depreciation expense under each of the following methods: (Round answers to O decimal places, eg. 5.275) Straight-line depreciation Diminishing-balance depreciation using a 40% rate $ Units-of-production depreciation 2024 $ 2025
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