University Car Wash built a deluxe car wash across the street from campus. The new machines cost $261,000 including installation. The companyestimates 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 about12,000 total hours. Actual use per year was as follows:YearHours Used12,80021,40031,50042,50052.30061,500Prepare a depreciations schedule for each six years using:1. Straight line method2. Activity-based method3. Double-declining Balance method

Supporting Calculations: STRAIGHT-LINE METHODThis is the simplest method of depreciation.…

Answered: University Car Wash built a deluxe car…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 13E

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University Car Wash built a deluxe car wash across the street from campus. The new machines cost $246,000 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 Hours Used 1 2,800 2 1,900 3 2,000 4 2,000 5 1,800 6 1,500 Problem 7-5A 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 built a deluxe car wash across the street from campus. The new machines cost $246,000 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 Hours Used 1 2,800 2 1,900 3 2,000 4 2,000 5 1,800 6 1,500 Problem 7-5A 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.)
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The following information applies to the questions displayed below.) University Car Wash built a deluxe car wash across the street from campus. The new machines cost $264,000, 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 Hours Used 12,900 2 1,300 3 1,400 4 2,600 5 2,400 6 1,900 2. Prepare a depreciation schedule for six years using the double-declining-balance method. Note: Do not round your intermediate calculations.
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