Problem 7-5A (Algo) Part 3 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decin places and use this amount in all subsequent calculations.) Year 1 2 3 4 5 6 Total UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense $ 0 Accumulated Depreciation Book Value

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Problem 7-5A (Algo) Part 3
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.)
Year
1
2
22wN
3
4
5
6
Total
UNIVERSITY CAR WASH
Depreciation Schedule-Activity-Based
End of Year Amounts
Depreciation
Expense
$
0
Accumulated
Depreciation
Book Value
Transcribed Image Text:Problem 7-5A (Algo) Part 3 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.) Year 1 2 22wN 3 4 5 6 Total UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense $ 0 Accumulated Depreciation Book Value
Required information
Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4)
[The following information applies to the questions displayed below.]
University Car Wash purchased new soap dispensing equipment that cost $231,000 including installation. The company
estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the
machine for six years or about 12,500 total hours. Actual use per year was as follows:
Year
1
2
3
4
5
6
Hours Used
2,900
1,800
1,900
2,100
1,900
1,900
Problem 7-5A (Algo) Part 3
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
ico
Transcribed Image Text:Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $231,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 3 4 5 6 Hours Used 2,900 1,800 1,900 2,100 1,900 1,900 Problem 7-5A (Algo) Part 3 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 ico
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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