Depreciation by units-of-activity method Instructions Chart of Accounts First Question Journal A = A. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year Truck No. Rate per Mile Miles Operated Credit to Accumulated Depreciation 21,300 $5,538 1 50.26 2 0.14 32,700 4.578 3 0.31 8,300 2.573 X 4 0.30 22,800 6,840 Total Points: 7/9 Feedback Check My Work Asset minus residual value equals depreciable cost. Units-of-production allocates the cost of the asset equally over the units produced. The depreciation rate stays constant, no matter how many miles are driven each period. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Instructions Chart of Accounts Instructions Prior to adjustment at the end of the year, the balance in Trucks is $298,443 and the balance in Accum $100,380. Details of the subsidiary ledger are as follows: Accumulated Depreciatic Beginning of Year Truck No. Cost $80,090 1 Estimated Residual Value Useful Life $15,220 249,500 miles 5.690 296,100 miles 13.610 201,900 miles 23,220 239,300 miles 2 47.144 $15,040 61,120 3 > 76.199 4 95,010 24.220 A Determine the depreciation rates per mile and the amount to be credited to the accumulated at of the subsidiary accounts for the miles operated during the current year. B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accou account titles