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Michael's, a popular pizza hang-out, has a thriving delivery business. Michael's has a fleet of three delivery automobiles. Michael's uses the units-of-activity method of calculating
Michael's, a popular pizza hang-out, has a thriving delivery business. Michael's has a fleet of three delivery automobiles. Michael's uses the units-of-activity method of calculating 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 $33,625 $4,750 82,500 $1,995 19,000 2 23,600 3,800 66,000 1,890 20,900 3 22,395 2,375 77,000 1.900 18,050 (a) Determine the depreciation rates per mile for each car. (Round answers to 2 decimal places, e.g. 15.25.) Car 1 per mile Car 2 per mile
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