city taxi purchases a new taxi cab for $25,000. The cab has an estimated salvage...
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Accounting
city taxi purchases a new taxi cab for $25,000. The cab has an estimated salvage value of $1,000 and is expected to be driven for approximately 120,000 miles over its useful life of five years.
a. Calculate the depreciation expense per mile. Round your answer to two decimal places.
b. Prepare a deprecation schedule assuming that the actual miles driven for years one through five were as follows: 25,000;27,000;21,000;28,000;and 19,000.
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