Define Annuity.

Explain the difference between an ordinary annuity and an annuity due.

Depreciation by units-of-activity Method Prior to adjustment at the end of the year, the balance in Trucks is $404,300 and the balance in Accumulated Depreciation—Trucks is $118,560. Details of the subsidiary ledger are as follows: TruckNo. Cost EstimatedResidualValue EstimatedUsefulLife AccumulatedDepreciationat Beginningof Year MilesOperatedDuringYear 1 $84,500   $12,675   230,000 miles —       34,500 miles 2 116,300   13,956   320,000   $23,260       32,000   3 91,000   12,740   200,000   $72,800       20,000   4 112,500   13,500   350,000   $22,500       42,000   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.…

Define Loan Refinancing?