Depreciation by units-of-activity Method

Prior to adjustment at the end of the year, the balance in Trucks is $405,200 and the balance in Accumulated DepreciationTrucks is $119,340. 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		230,000	miles			34,500	miles
2	112,700		13,524		290,000		$22,540		29,000
3	91,000		12,740		213,000		$72,800		21,300
4	120,000		14,400		270,000		$24,000		32,400

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	$		34,500		$
2	$		29,000		$
3	$		21,300		$
4	$		32,400		$
			Total		$

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

	Depreciation Expense-Trucks
	Accumulated Depreciation-Trucks