Required information [The following information applies to the questions displayed below] University Car Wash purchased new soap dispensing equipment that cost $261,000 including installation. The company estimates that the equipment will have a residual value of $27,000. 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 1 2 3 Year 1 2 3 Hours Used 2,800 1,400 1,500 2,500 2,300 1,500 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 Depreciation Book Value

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below]
University Car Wash purchased new soap dispensing equipment that cost $261,000 including installation. The company
estimates that the equipment will have a residual value of $27,000. 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
Year
1
2
3
Hours Used
2,800
1,400
1,500
2,500
2,300
1,500
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
Depreciation
Book Value
Check
Transcribed Image Text:Required information [The following information applies to the questions displayed below] University Car Wash purchased new soap dispensing equipment that cost $261,000 including installation. The company estimates that the equipment will have a residual value of $27,000. 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 Year 1 2 3 Hours Used 2,800 1,400 1,500 2,500 2,300 1,500 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 Depreciation Book Value Check
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