Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $416,800 and the balance in Accumulated Depreciation-Trucks is $125,560. Details of the subsidiary ledger a Accumulated Depreciation Miles Operated at Beginning During of Year Year Truck No. 1 2 3 Cost $78,500 111,800 96,500 130,000 Truck No. 123 4 Estimated Residual Value Feedback $11,775 13,416 13,510 15,600 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 depreciation taken cannot reduce the book value of the truck below its residual value. Rate per Mile (in cents) Round the rate per mile to two decimal places. Enter all values as positive amounts. Credit to Accumulated Depreciation 0.29 Show Me How 0.32 0.41 Estimated Useful Life 0.31 230,000 miles 310,000 202,000 370,000 Miles Operated 34,500 31,000 20,200 44,400 T $22,80 $77,200 $26,000 Total $ 34,500 miles 31,000 20,200 44,400 $ 10,005 9,920 8,282 X 13,764 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 ar taken cannot reduce the book value of the truck below its residual value.

Deciredation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $416,800 and the balance in Accumulated Depreciation-Trucks is $125,560, Details of the subsidiary ledger a. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated deprecation section of each subsidiary account for the miles operace depredation taken carnot 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. takn cannot redoce the book value of the truck below it residuai vaive