EZ Accounting 101 HWQu· e Rosco Tani service Uses https://edugen wileyplus.com/e

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EZ Accounting 101 HWQu· e Rosco Tani service Uses https://edugen wileyplus.com/edugen/lti/main.uni Kimmel, Financial Accounting, 8e, Custom for University of Akron Brief Exercise 9-14 (Part Level Submission) Kwik Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to driven 34,000 miles in 2016 and 34,600 miles in 2017 3 Your answer is incorrect. Try again. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) Depreciable cost .sse1]per unit Attempts: 1 of 3 used SAVE FOR LATERSUBMIT ANSWER The parts of this question must be completed in arder. This part will be available when you complete the part above.

Explanation / Answer

a) Depreciation Cost per mile = (Cost of taxi 10 - Salvage Value)/Total miles

= ($27,600 - $300)/166,000 miles

= $27,300/166,000 miles = $0.16 per mile

Depreciation cost for 2016 = Miles driven*Depreciable cost per mile

= 34,000 miles*$0.16 per mile = $5,440

Depreciation cost for 2017 = Miles driven*Depreciable cost per mile

= 34,600 miles*$0.16 per mile = $5,536

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