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Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 152,000 miles. Taxi no. 10
Rosco Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 152,000 miles. Taxi no. 10 cost $33,000 and is expected to have a salvage value of $800. Taxi no. 10 is driven 35, 600 miles in year 1 and 20, 800 miles in year 2. Calculate depreciation cost per mile using unit-of-activity method. Compute the depreciation for each year
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