AUBURN CAR WASH Cost of new car wash machines: $800, 000 Estimated residual value: $50,000 Machine life in years:5 Machine life in hours: 10, 000 Actual use per year: Year Hours used 1 2,000 2 1,800 3 2,200 4 2,100 5 1,900 Use the information on the Given Data worksheet to prepare three depreciation schedules using the following methods: straight-line, double- declining balance, and activity - based. Auburn Car Wash Straight Line If you hover your mouse over a cell with a red flag you will see the comment Auburn Car Wash Double - Declining - Balance If you hover your mouse over a cell with a red flag you will see the comment Note: for year 5 you must make the year end book value equal to the Residual Value Therefore you will need to take the beginning book value less the Residual Value Auburn Car Wash Activity - Based When you have completed all three schedules answer the following question. What do you observe about the Book Value at the end of the 5th year for all three methods? Type answer here longrightarrow

AUBURN CAR WASH Cost of new car wash machines: $800, 000 Estimated residual value: $50,000 Machine life in years:5 Machine life in hours: 10, 000 Actual use per year: Year Hours used 1 2,000 2 1,800 3 2,200 4 2,100 5 1,900 Use the information on the Given Data worksheet to prepare three depreciation schedules using the following methods: straight-line, double- declining balance, and activity - based. Auburn Car Wash Straight Line If you hover your mouse over a cell with a red flag you will see the comment Auburn Car Wash Double - Declining - Balance If you hover your mouse over a cell with a red flag you will see the comment Note: for year 5 you must make the year end book value equal to the Residual Value Therefore you will need to take the beginning book value less the Residual Value Auburn Car Wash Activity - Based When you have completed all three schedules answer the following question. What do you observe about the Book Value at the end of the 5th year for all three methods? Type answer here longrightarrow

Name: AUBURN CAR WASH Cost of new car wash machines: $800,000 Estimated res
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Description: AUBURN CAR WASH Cost of new car wash machines: $800,000 Estimated residual value: $50,000Machine life in years:5 Machine life in hours: 10,000 Actual use per year: Year Hours used1 2,000 2 1,800 3 2,200 4 2,100 5 1,900 Use the information on the Giv

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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