Depreciation by units-of-activity Method

Prior to adjustment at the end of the year, the balance in Trucks is $211,400 and the balance in Accumulated DepreciationTrucks is $23,905. 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	$43,500		$5,700		140,000	miles			21,000	miles
2	61,200		8,000		280,000		$505		22,000
3	33,100		2,700		190,000		7,000		34,000
4	73,600		10,700		170,000		16,400		34,000

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
1	$				21,000					$
2					22,000
3					34,000
4					34,000
Total