Depreciation by units-of-activity Method

Prior to adjustment at the end of the year, the balance in Trucks is $419,400 and the balance in Accumulated DepreciationTrucks is $124,880. 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	$83,000		$12,450		220,000	miles			33,000	miles
2	115,400		13,848		280,000		$23,080		28,000
3	96,000		13,440		200,000		$76,800		20,000
4	125,000		15,000		420,000		$25,000		50,400

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. Enter all values as positive amounts.

Truck No.	Rate per Mile (in cents)		Miles Operated		Credit to Accumulated Depreciation
1	$		33,000		$
2	$		28,000		$
3	$		20,000		$
4	$		50,400		$
			Total		$

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b. Journalize the entry to record depreciation for the year.