University Car Wash purchased new soap dispensing equipment that cost $222,000 including installation. The company estimates that the equipment will have a residual value of $21,000. 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 Hours Used 2,700 2 1,500 3 1,600 4 2,400 5 6 2,200 1,600 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)
University Car Wash purchased new soap dispensing equipment that cost $222,000 including installation. The company estimates that the equipment will have a residual value of $21,000. 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 Hours Used 2,700 2 1,500 3 1,600 4 2,400 5 6 2,200 1,600 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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University Car Wash purchased new soap dispensing equipment that cost $222,000 including installation. The company
estimates that the equipment will have a residual value of $21,000. 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
Hours Used
2,700
2
1,500
3
1,600
4
2,400
5
6
2,200
1,600
2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate
calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
Year
Depreciation
Expense
1
2
3
4
5
6
Total
$
0
Accumulated
Depreciation
Book Value
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