Depreciation by units-of-activity Method

Prior to adjustment at the end of the year, the balance in Trucks is $221,700 and the balance in Accumulated DepreciationTrucks is $25,819. Details of the subsidiary ledger are as follows:

Truck No.	Cost	Estimated Residual Value	Estimated Useful Life (in miles)	Accumulated Depreciation at Beginning of Year	Miles Operated During Year
1	$43,400	5,700	130,000	-	20,000
2	62,800	8,200	260,000	$519	21,000
3	33,400	2,800	170,000	7,000	31,000
4	82,100	11,900	180,000	18,300	36,000

a. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year. Round the rate per mile to two decimal places and credit to accumulated depreciation to the nearest dollar.

Truck No.	Rate per Mile (in cents)				Miles Operated	Credit to Accumulated Depreciation
1	$				20,000	$
2					21,000
3					31,000
4					36,000
Total						$

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