University Car Wash purchased new soap dispensing equipment that cost $225,000 including installation. The companyestimates that the equipment will have a residual value of $22,500. University Car Wash also estimates it will use themachine for six years or about 12,500 total hours. Actual use per year was as follows:YearYear123456Total123456Hours Used3,1001,6003. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimalplaces and use this amount in all subsequent calculations.)1,7002,3002,1001,700UNIVERSITY CAR WASHDepreciation Schedule-Activity-BasedEnd of Year AmountsDepreciationExpense0AccumulatedDepreciationBook Value

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Description: University Car Wash purchased new soap dispensing equipment that cost $225,000 including installation. The companyestimates that the equipment will have a residual value of $22,500. University Car Wash also estimates it will use themachine for six y

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University Car Wash purchased new soap dispensing equipment that cost $225,000 including installation. The company estimates that the equipment will have a residual value of $22,500. 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 3 Year 1 2 3 4 5 6 Total 4 5 6 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.) Hours Used 3,100 1,600 1,700 2,300 2,100 1,700 $ UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense 0 Accumulated Depreciation Book Value

University Car Wash purchased new soap dispensing equipment that cost $225,000 including installation. The company estimates that the equipment will have a residual value of $22,500. 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 3 Year 1 2 3 4 5 6 Total 4 5 6 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.) Hours Used 3,100 1,600 1,700 2,300 2,100 1,700 $ UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense 0 Accumulated Depreciation Book Value

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $228,000 including installation. The company estimates that the equipment will have a residual value of $24,000. 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 4 56 Year 1 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.) Total 23456 Hours Used 3,000 1,700 1,800 2,200 2,000 1,300 S UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Expense 0 Accumulated Depreciation Book Value
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