Prior to adjustment at the end of the year, the balance in Trucks is $401,800...
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Accounting
Prior to adjustment at the end of the year, the balance in Trucks is $401,800 and the balance in Accumulated DepreciationTrucks is $118,060. Details of the subsidiary ledger are as follows:
TruckNo.
Cost
EstimatedResidualValue
EstimatedUsefulLife
AccumulatedDepreciationat Beginningof Year
MilesOperatedDuringYear
1
$84,500
$12,675
200,000 miles
30,000 miles
2
116,300
13,956
340,000 miles
$23,260
34,000 miles
3
91,000
12,740
210,000 miles
72,800
21,000 miles
4
110,000
13,200
420,000 miles
22,000
50,400 miles
Question Content Area
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. Enter all values as positive amounts.
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