Depreciation by units-of-activity method

Prior to adjustment at the end of the year, the balance in Trucks is $400,700 and the balance in Accumulated DepreciationTrucks is $119,940. 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	$11,775	200,000 miles		30,000 miles
2	117,200	14,064	390,000 miles	$23,440	39,000 miles
3	92,500	12,950	210,000 miles	74,000	21,000 miles
4	112,500	13,500	380,000 miles	22,500	45,600 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.