Required information Problem 7-5A (Algo) Determine depreciation under three methods (L07-4) (The following information applies to the questions displayed below.) University Car Wash purchased new soap dispensing equipment that cost $219.000 including installation. The company estimates that the equipment will have a residual value of $19,500. 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 Hours Used 2,800 1,400 1,500 2,500 2,300 2,000 Problem 7-5A (Algo) Part 1 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 Depreciation Expense Accumulated Depreciation Year Book Value

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
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Chapter8: Depreciation And Sale Of Business Property
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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 $219,000 including installation. The company
estimates that the equipment will have a residual value of $19,500. 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
Hours Used
2,800
1,400
1,500
2,500
2,300
2,000
4
Problem 7-5A (Algo) Part 1
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
Depreciation
Expense
Accumulated
Depreciation
Year
Book Value
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 $219,000 including installation. The company estimates that the equipment will have a residual value of $19,500. 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 Hours Used 2,800 1,400 1,500 2,500 2,300 2,000 4 Problem 7-5A (Algo) Part 1 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 Depreciation Expense Accumulated Depreciation Year Book Value
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