Question
Sunshine Taxi Company purchased a taxi on October 1, 2018, for $8,500. The taxi was expected to have a useful life of 5 years, or
Sunshine Taxi Company purchased a taxi on October 1, 2018, for $8,500. The taxi was expected to have a useful life of 5 years, or 102,500 miles, and a residual value of $300. The taxi was driven for 5,800 miles during 2018; 24,600 miles during 2019; 23,200 miles during 2020; 22,500 miles during 2021; 19,300 miles during 2022; and 12,400 miles during 2023. a.) Complete the following depreciation schedule for the taxi, assuming Sunshine Taxi Company uses the straight-line method to calculate depreciation expense. Year 2018 2019 2020 2021 2022 2023 Cost Cost Residual Depreciation Expense Accumulated Depreciation Book Valueb.) Complete the following depreciation schedule for the taxi, assuming Sunshine Taxi Company uses the units-of-production method to calculate depreciation expense. Year 2018 2019 2020 2021 2022 2023 Cost # of miles, Depreciation Expense Accumulated Depreciation, Book Valueb.Complete the following depreciation schedule for the taxi, assuming Sunshine Taxi Company uses the declining-balance method at twice the straight-line rate to calculate depreciation expense.
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