Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $418,100 and the balance in Accumulated Depreciation-Trucks is $128,820. Details of the subsidiary ledger are as follows: Estimated Residual Value Accumulated Depreciation at Beginning of Year Estimated Useful Life Truck Miles Operated During Year No. Cost 240,000 miles 36,000 miles $22,720 $80,000 113,600 102,000 122,500 $12,000 13,632 14,280 14,700 240,000 220,000 260,000 $81,600 $24,500 24,000 22,000 31,200 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. Miles Operated Credit to Accumulated Depreciation Truck No. Rate per Mile (in cents) $ 0.28 $ 0.42 36,000 $ 10,080 $ 10,080 24.000 Truck No. Operated Depreciation (in cents) 0.28 36,000 10,080 $ $ $ 0.42 24,000 10,080 22,000 0.40 0.41 $ 31,200 $ 12,792 Total $ 41,752 x 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. b. Journalize the entry to record depreciation for the year. Depreciation Expense-Trucks Accumulated Depreciation-Trucks