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Freemont Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 150,000 miles. Taxi no. 10 cost $33,500 and is expected to have a salvage value of $500. Taxi no. 10 is driven 36,000 miles in year 1 and 22,000 miles in year 2. Compute the depreciation for each year.
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