. Prepare a depreciation schedule for six years using the straight-line method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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University Car Wash purchased new soap dispensing equipment that cost $234,000 including installation. The company estimates that the equipment will have a residual value of $27,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows:
| Year | Hours Used |
|---|---|
| 1 | 2,800 |
| 2 | 1,900 |
| 3 | 2,000 |
| 4 | 2,000 |
| 5 | 1,800 |
| 6 | 1,500 |
Required:
1. Prepare a
Transcribed Image Text:Required:
1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Straight-Line
End of Year Amounts
Year
Depreciation
Expense
1
2
3
4
5
6
Total
$
0
Accumulated
Depreciation
Book Value
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