University Car Wash purchased new soap dispensing equipment that cost $210,000 including installation. The c estimates that the equipment will have a residual value of $19,500. University Car Wash also estimates it will use machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 3 5 6 Hours Used 3,100 1,100 1,200 2,800 2,600 1,700 repare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to es and use this amount in all subsequent calculations.) UNIVERSITY CAR WASH
University Car Wash purchased new soap dispensing equipment that cost $210,000 including installation. The c estimates that the equipment will have a residual value of $19,500. University Car Wash also estimates it will use machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 3 5 6 Hours Used 3,100 1,100 1,200 2,800 2,600 1,700 repare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to es and use this amount in all subsequent calculations.) UNIVERSITY CAR WASH
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:University Car Wash purchased new soap dispensing equipment that cost $210,000 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
Year
1
2
3
4
5
6
Total
4
5
6
Hours Used
3,100
1,100
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.)
1,200
2,800
2,600
1,700
UNIVERSITY CAR WASH
Depreciation Schedule-Activity-Based
End of Year Amounts
Depreciation
Expense
Accumulated
Depreciation
Book Value
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