question archive Speedy Taxi Service uses the units-of-production method to calculate depreciation on its taxicabs
Speedy Taxi Service uses the units-of-production method to calculate depreciation on its taxicabs
Subject:AccountingPrice: Bought3
Speedy Taxi Service uses the units-of-production method to calculate depreciation on its taxicabs. Each cab is expected to be driven 325,000 km. Taxi 10 was purchased on March 1, 2011, for $33,000 and is expected to have a residual value of $500. Taxi 10 was driven 125,000 km in 2011 and 105,000 km in 2012. Speedy Taxi Service has a December 31 year end. Calculate the depreciation expense on Taxi 10 for each year.
