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Question - Mark's, a popular pizza hang-out, has a thriving delivery business. Mark's has a fleet of three delivery automobiles. The company uses the units-of-activity method of 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
$20,090
$3,500
79,000
$2,560
21,000
2
15,350
2,700
55,000
2,320
23,500
3
21,940
2,500
72,000
2,300
20,500
Required -
Determine the depreciation rates per mile for each car.
Determine the depreciation expense for each car for the current year.
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