Depreciation by units$-$of$-$activity method

Prior to adjustment at the end of the year, the balance in Trucks is $$406,500$ and the balance in Accumulated Depreciation$$Trucks is $$126,200.$ 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

$1$ $$78,500$ $$11,775230,000$ miles $34,500$ miles

$2114,50013,740280,000$ miles $$22,90028,000$ miles

$3101,00014,140219,000$ miles $80,80021,900$ miles

$4112,50013,500310,000$ miles $22,50037,200$ miles

Question Content Area

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.b$.$ Journalize the entry to record depreciation for the year. If an amount box does not require an entry, leave it blank.