1) University Car Wash built a deluxe car wash across the street from campus. The new machines cost $240,000 including installation. The company estimates that the equipment will have a residual value of $30,000. 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 2,600 2 2,100 3 2,200 4 1,800 5 1,600 6 1,700 Picture 1) Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) 2)University Car Wash built a deluxe car wash across the street from campus. The new machines cost $240,000 including installation. The company estimates that the equipment will have a residual value of $30,000. 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 2,600 2 2,100 3 2,200 4 1,800 5 1,600 6 1,700 Picture 2) Prepare a depreciation schedule for six years using the activity-based method.
1) University Car Wash built a deluxe car wash across the street from campus. The new machines cost $240,000 including installation. The company estimates that the equipment will have a residual value of $30,000. 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 | 2,600 |
2 | 2,100 |
3 | 2,200 |
4 | 1,800 |
5 | 1,600 |
6 | 1,700 |
Picture 1) Prepare a
2)University Car Wash built a deluxe car wash across the street from campus. The new machines cost $240,000 including installation. The company estimates that the equipment will have a residual value of $30,000. 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 | 2,600 |
2 | 2,100 |
3 | 2,200 |
4 | 1,800 |
5 | 1,600 |
6 | 1,700 |
Picture 2) Prepare a depreciation schedule for six years using the activity-based method.
![2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate
calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Double-Declining-Balance
End of year amounts
Depreciation
Expense
Accumulated
Year
Book Value
Depreciation
1
3
4
6.
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc480ef23-b9e1-4ed5-80be-5a6f0613e933%2F407d8a1a-9184-4f11-804b-3e2a9d0f159f%2Fvgu42y3_processed.png&w=3840&q=75)
![3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal
places and use this amount in all subsequent calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Activity-Based
End of year amounts
Depreciation
Expense
Accumulated
Year
Book Value
Depreciation
1
2
4
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc480ef23-b9e1-4ed5-80be-5a6f0613e933%2F407d8a1a-9184-4f11-804b-3e2a9d0f159f%2Fgicpdza_processed.png&w=3840&q=75)
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