TB MC Qu. 6-70 (Algo) On January 1, Year 1, the...
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $72,000. The cab has an expected salvage value of $2,000. The
company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation
expense. The cab was driven 54,000 miles the first year and 56,700 the second year. What would be the depreciation expense reported on
the Year 2 income statement and the book value of the taxi, respectively, at the end of Year 2?
