Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $394,800 and the balance in Accumulated Depreciation-Trucks is $125,960. Details of the subsidiary ledger are as follows: Truck No. 1 2 3 4 1 Cost Truck No. 2 $78,500 111,800 104,500 100,000 3 Estimated Residual Value $11,775 13,416 14,630 12,000 Estimated Useful Life Rate per Mile (in cents) 210,000 miles 420,000 204,000 290,000 4 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. Miles Operated 31,500 42,000 Check My Work 6 more Check My Work uses remaining. Accumulated Depreciation at Beginning of Year 20,400 $22,360 83,600 20,000 Miles Operated During Year 31,500 miles 42,000 20,400 34,800 Credit to Accumulated Depreciation Previous Next

Deprecation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $394,800 and the balance in Accumulated Depreciation-Trucks is $125,960. Detals of the subsidiary ledger are as follows: 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 vear, 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 decimat ptaces. 6 more Chock My Work uses remaining