Flint Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 153,000 miles. Taxi no. 10 cost $41,080 and is expected to have a salvage value of $1,300. Taxi no. 10 was driven 31,100 miles in 2022 and 24,700 miles in 2023. (a1) Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost $ per mile

Flint Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 153,000 miles. Taxi no. 10 cost $41,080 and is expected to have a salvage value of $1,300. Taxi no. 10 was driven 31,100 miles in 2022 and 24,700 miles in 2023. (a1) Calculate depreciation cost per mile using unit-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation cost $ per mile

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Riverbed Company purchased a delivery truck for $33,000 on January 1, 2020. The truck has an expected salvage value of $2,760, and is expected to be driven 108,000 miles over its estimated useful life of 10 years. Actual miles driven were 16,800 in 2020 and 12,600 in 2021. (a1) Your answer has been saved. See score details after the due date. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense $ per mile Attempts: 1 of 1 used (a2) Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.) Depreciation Expense 2020…