Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Hours Used 2,800 2,000 2,000 3,200 Year Problem 7-5B Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Year Book Value Depreciation 1 $ 27,832 $ 27,832 $ 78,168 2 19,880 47,712 58,288 19,880 67,592 38,408 4 Total $ 67,592 1234
Problem 7-5B Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Cheetah Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Hours Used 2,800 2,000 2,000 3,200 Year Problem 7-5B Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense Accumulated Year Book Value Depreciation 1 $ 27,832 $ 27,832 $ 78,168 2 19,880 47,712 58,288 19,880 67,592 38,408 4 Total $ 67,592 1234
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I can't seem to figure out the fourth year. I tried 3200*9.94= 31808 but that was incorrect. I also tried without rounding 3200*9.9375=31800 and that was also incorrect.
![!
Required information
Problem 7-5B Determine depreciation under three methods (LO7-4)
[The following information applies to the questions displayed below.]
Cheetah Copy purchased a new copy machine. The new machine cost $106,000
including installation. The company estimates the equipment will have a residual value
of $26,500. Cheetah Copy also estimates it will use the machine for four years or
about 8,000 total hours. Actual use per year was as follows:
Hours Used
2,800
2,000
2,000
3,200
Year
Problem 7-5B Part 3
3. Prepare a depreciation schedule for four years using the activity-based method. (Round your
"Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.)
CHEETAH CОPY
Depreciation Schedule-Activity-Based
End of Year Amounts
Depreciation
Expense
Accumulated
Depreciation
Year
Book Value
1
$
27,832 $
27,832
$
78,168
2
19,880
47,712
58,288
19,880
67,592
38,408
4
Total
$
67,592
1234](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F76fbabf8-31e8-4633-9b5f-02ed8cf12003%2F9de6b133-c34d-4077-aa13-75326f789adf%2Fz0hmlu5_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 7-5B Determine depreciation under three methods (LO7-4)
[The following information applies to the questions displayed below.]
Cheetah Copy purchased a new copy machine. The new machine cost $106,000
including installation. The company estimates the equipment will have a residual value
of $26,500. Cheetah Copy also estimates it will use the machine for four years or
about 8,000 total hours. Actual use per year was as follows:
Hours Used
2,800
2,000
2,000
3,200
Year
Problem 7-5B Part 3
3. Prepare a depreciation schedule for four years using the activity-based method. (Round your
"Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.)
CHEETAH CОPY
Depreciation Schedule-Activity-Based
End of Year Amounts
Depreciation
Expense
Accumulated
Depreciation
Year
Book Value
1
$
27,832 $
27,832
$
78,168
2
19,880
47,712
58,288
19,880
67,592
38,408
4
Total
$
67,592
1234
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