13.

Depreciation by Units-of-activity Method

Prior to adjustment at the end of the year, the balance in Trucks is $425,000 and the balance in Accumulated DepreciationTrucks is $131,400. Details of the subsidiary ledger are as follows:

Truck No.	Cost		Estimated Residual Value		Estimated Useful Life		Accumulated Depreciation at Beginning of Year		Miles Operated During Year
1	$81,500		$12,225		240,000	miles			36,000	miles
2	119,000		14,280		280,000		$23,800		28,000
3	104,500		14,630		212,000		83,600		21,200
4	120,000		14,400		340,000		24,000		40,800

a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round the rate per mile to two decimal places.

Truck No.	Rate per Mile (in cents)		Miles Operated		Credit to Accumulated Depreciation
1	$fill in the blank 37723efa9004fee_1		36,000		$fill in the blank 37723efa9004fee_2
2	fill in the blank 37723efa9004fee_3		28,000		fill in the blank 37723efa9004fee_4
3	fill in the blank 37723efa9004fee_5		21,200		fill in the blank 37723efa9004fee_6
4	fill in the blank 37723efa9004fee_7		40,800		fill in the blank 37723efa9004fee_8
			Total		$fill in the blank 37723efa9004fee_9

b. Journalize the entry on December 31 to record depreciation for the year. If an amount box does not require an entry, leave it blank.

		fill in the blank 3bb7d6fe802b060_2	fill in the blank 3bb7d6fe802b060_3
		fill in the blank 3bb7d6fe802b060_5	fill in the blank 3bb7d6fe802b060_6