pina coloda 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 $63,200 and is expected to have a salvage value of $2000. Taxi no. 10 is driven 35,300 miles in year 1 and 20,400 miles in a year 2.
calculate depreciation coat per mile using unit of activity method
compute the depreciation for each year 1 and year 2