Determine the depreciation rates per mile

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Reference no: EM13547734

Depreciation by units-of-output 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 $99,740. Details of the subsidiary ledger are as follows:





Accumulated

Miles



Estimated

Estimated

Depreciation

Operated

Truck


Residual

Useful

at Beginning

During

No.

Cost

Value

Life

of Year

Year

1

$80,000

$15,000

250,000 miles

-

21,000 miles

2

54,000

6,000

300,000

$14,400

33,500

3

72,900

10,900

200,000

60,140

8,000

4

90,000

22,800

240,000

25,200

22,500

a. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year.

b. Journalize the entry to record depreciation for the year.

Reference no: EM13547734

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