Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $399,200 and the balance in Accumulated Depreciation-Trucks is $123,540. Details of the subsidiary ledger are as follows: Accumulated Depreciation at Beginning of Year Truck No. 1 Estimated Residual Value $12,000 14,064 13,930 12,300 Cost $80,000 117,200 99,500 102,500 Estimated Useful Life 200,000 miles 240,000 212,000 420,000 Miles Operated During Year 30,000 miles 24,000 21,200 50,400 2 $23,440 $79,600 $20,500 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. Enter all values as positive amounts. Rate per Mille (in cents) Truck No. Credit to Accumulated Depreciation Miles Operated 30,000 0.34 $ 10,200 10,320 24,000 21,200 50,400 Total 39,584 Truck No. (in cents) Depreciation Operated 30,000 10,200 24,000 $ 10,320 21,200 8,480 1 50,400 10,584 Total 39,584 X Feedback Check My World 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 b. Journalize the entry to record depreciation for the year. Depreciation Expense-Trucks Accumulated Depreciation-Trucks