Steagall Corporation purchased a vehicle costing $65,000 on January 1, 2019. The company intends to depreciate the asset over 4 years using the units-of-activity method, based on mileage. The salvage value is estimated to be $3,000. The vehicle is expected to be driven by Steagall a total of approximately 200,000 miles during the life of the asset. Using this information, answer the following questions.

What is the depreciation rate of vehicle? $____________________

Prepare the necessary journal entry to record depreciation expense for the current period, if the vehicle was driven 70,000 miles.

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