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Need help! Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in. Trucks is $296,900 and the balance in
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Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in. Trucks is $296,900 and the balance in Accumulated Depreciation-Trucks is 599,740 . Details of the subsidiary ledger are as follows: 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. b. Journalize the entry on December 31 to recond depreciation for the year. If an amount box does not require an entry, leave it blank. Der. 3 Remember that the company journalizes the depreciation of the trucks as one asset. Entries for Sale of Fooed Asset. Equipment acquired on January 8 at a cost of $168,000 has an estimated useful life of 18 years, has an estimated residual value of 515,000 , and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? b. Assume that the equipment was sold on April 1 of the fifth year for $125,000. 1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank. 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank Step by Step Solution
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