h. 10 Show Me How Estimated Estimated Depreciation Operated Truck UsefulcatinMil

Question

h. 10 Show Me How Estimated Estimated Depreciation Operated Truck UsefulcatinMiles at Beginning of Year Ouring 21,000 miles 54,000 72,900 90,000 6,000 300,000 10,900 200,000 22,800 240,000 $14,400 60,140 25,20022,500 rate per mile and the amount to be crecited to the accumulated depreciation section of each subsidiary account for the miles operated duning the curent year Keep in mnd 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 21,000 33,500 Total Previous Nod

Explanation / Answer

a. Rate per mile=(Cost-Estimated residual value)/Estimated useful life Credit to accumulated depreciation=Miles operated*Rate per mile Truck No. Rate per Mile Miles Operated Credit to Accumulated Depreciation 1 0.26 21000 5460 (80000-15000)/250000 2 0.16 33500 5360 (54000-6000)/300000 3 0.31 8000 2480 (72900-10900)/200000 4 0.28 22500 6300 (90000-22800)/240000 Total 19600 b. Entry: Date Account name Debit Credit Dec 31. Depreciation expense 19600 Accumulated depreciation 19600

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