Chapter 10 Homework Assignment Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $234,800 and the balance in Accumulated Depreciation-Trucks is $28,217. Details of the subsidiary ledger are as follows: Miles Operated During Year Accumulated Depreciation at Beginning of Year Estimated Estimated Truck Useful Residual Cost Value Life No $6,000 8,200 2,600 13,700 160,000 miles 320,000 210,000 230,000 24,000 miles $46,000 26,000 38,000 46,000 62,600 32,000 94,200 $517 6,800 20,900 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. Truck No. Rate per Mile (in cents) Miles Operated Credit to Accumulated Depreciation 45.99 X 24,000 26,000 38,000 46,000 4 Total 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