[The following information applies to the questions displayed below.] Quick 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. Quick Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 1 2,800 2 2,000 3 2,000 4 3,200 Problem 7-5B (Algo) 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. Round answers to the nearest whole dollar.) > Answer is complete but not entirely correct. QUICK COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Accumulated Year 1 Book Value Expense Depreciation $ 27,825 $ 27,825 $ 78,175 2 19,876 47,700 58,325 X 3 19,876 67,575 38,450 x 4 31,800 x 99,375 5,125 x Total $ 99,377
[The following information applies to the questions displayed below.] Quick 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. Quick Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 1 2,800 2 2,000 3 2,000 4 3,200 Problem 7-5B (Algo) 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. Round answers to the nearest whole dollar.) > Answer is complete but not entirely correct. QUICK COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Accumulated Year 1 Book Value Expense Depreciation $ 27,825 $ 27,825 $ 78,175 2 19,876 47,700 58,325 X 3 19,876 67,575 38,450 x 4 31,800 x 99,375 5,125 x Total $ 99,377
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 17P
Related questions
Question
![[The following information applies to the questions displayed below.]
Quick 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. Quick Copy also estimates it will use the machine for four
years or about 8,000 total hours. Actual use per year was as follows:
Year
Hours Used
1
2,800
2
2,000
3
2,000
4
3,200
Problem 7-5B (Algo) 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. Round answers to the nearest whole dollar.)
> Answer is complete but not entirely correct.
QUICK COPY
Depreciation Schedule-Activity-Based
End of Year Amounts
Depreciation
Accumulated
Year
1
Book Value
Expense
Depreciation
$
27,825
$
27,825
$
78,175
2
19,876
47,700
58,325 X
3
19,876
67,575
38,450 x
4
31,800 x
99,375
5,125 x
Total
$
99,377](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa5ce751d-e1db-4074-be21-10eaa9189ef4%2Ff617bcfc-d64b-4f78-89e4-ae6a32ef34a8%2Fog0h849_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Quick 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. Quick Copy also estimates it will use the machine for four
years or about 8,000 total hours. Actual use per year was as follows:
Year
Hours Used
1
2,800
2
2,000
3
2,000
4
3,200
Problem 7-5B (Algo) 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. Round answers to the nearest whole dollar.)
> Answer is complete but not entirely correct.
QUICK COPY
Depreciation Schedule-Activity-Based
End of Year Amounts
Depreciation
Accumulated
Year
1
Book Value
Expense
Depreciation
$
27,825
$
27,825
$
78,175
2
19,876
47,700
58,325 X
3
19,876
67,575
38,450 x
4
31,800 x
99,375
5,125 x
Total
$
99,377
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