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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. Credit to Rate per Mile Miles Accumulated Truck No. (in cents) Operated Depreciation 1 0.30 34,500 10,350 0.29 35,000 10,150 0.41 21,800 8,938 X 0.35 36,000 12,600 Total 42,038 x 2 3 4 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. Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $421,000 and the balance in Accumulated Depreciation-Trucks is $130,900. Details of the subsidiary ledger are as follows: Accumulated Miles Estimated Estimated Depreciation Operated Truck Residual Useful at Beginning During No. Cost Value Life of Year Year $81,500 $12,225 230,000 miles 34,500 miles 2 114,500 13,740 350,000 $22,900 35,000 3 105,000 14,700 218,000 $84,000 21,800 120,000 14,400 300,000 $24,000 36,000 1 4