Units$-$of$-$activity depreciation

A truck acquired at a cost of $$235,000$ has an estimated residual value of $$14,600,$ has an estimated useful life of $58,000$ miles, and was driven $5,800$ miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places.

$($a$)$ The depreciable cost

$$220,400$

$

$

$($b$)$ The depreciation rate

$($c$)$ The units$-$of$-$activity depreciation for the year

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Depreciable cost is the difference between the asset's initial cost and its residual value. The residual value is the estimated value at the end of the useful life.

Annual units$-$of$-$activity depreciation allocates the cost of the asset equally over the expected productive capacity.