Howe Chemicals Company acquires a delivery truck at a cost of $40,900 on January 1, 2014. The truck is expected to have a salvage value of $4,700 at the end of its 5-year useful life.

Howe Chemicals Company acquires a delivery truck at a cost of $40,900 on January 1, 2014. The truck is expected to have a salvage value of $4,700 at the end of its 5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.

		First Year		Second Year
Annual depreciation under declining-balance method		$		$
Speedy Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 161,330 miles. Taxi 10 cost $21,460 and is expected to have a salvage value of $570. Taxi 10 was driven 34,880 miles in 2013 and 30,830 miles in 2014.

(a) Your answer is correct. Determine the depreciation cost. (Round answers to 2 decimal places, e.g. 1.25.) Depreciable cost $  per unit Attempts: 1 of 3 used

(b) Your answer is correct. Compute the depreciation for each year. (Round answers to 0 decimal places, e.g. 125.) 2013 2014 Depreciation expense $ $