Question
Josephs, a popular pizza hang-out, has a thriving delivery business. Josephs has a fleet of three delivery automobiles. The company uses the units-of-activity method of
Josephs, a popular pizza hang-out, has a thriving delivery business. Josephs has a fleet of three delivery automobiles. The company uses the units-of-activity method of depreciation. Prior to making the entry for this year's depreciation expense, the subsidiary ledger for the fleet is as follows:
Car | Cost | Salvage Value | Estimated Life in Miles | Accumulated Depr.Beg. of the Year | Miles Operated During Year | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 | $21,500 | $2,000 | 78,000 | $2,510 | 20,700 | ||||||||||
2 | 17,920 | 2,800 | 56,000 | 2,390 | 22,500 | ||||||||||
3 | 25,220 | 2,900 | 72,000 | 2,700 | 19,500 |
(a)
Determine the depreciation rates per mile for each car. (Round answers to 2 decimal places, e.g. 0.25.)
Car 1 | $enter a dollar amount per mile rounded to 2 decimal places | per mile | |
---|---|---|---|
Car 2 | $enter a dollar amount per mile rounded to 2 decimal places | per mile | |
Car 3 | $enter a dollar amount per mile rounded to 2 decimal places | per mile |
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(b)
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(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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