University Car Wash purchased new soap dispensing equipment that cost $249,000 including installation. The companyestimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use themachine for six years or about 12,500 total hours. Actual use per year was as follows:Year123456TotalYear123456Problem 7-5A (Algo) Part 33. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimalplaces and use this amount in all subsequent calculations.)Hours Used2,9001,8001,9002,1001,9001,900$UNIVERSITY CAR WASHDepreciation Schedule-Activity-BasedEnd of Year AmountsDepreciationExpense0AccumulatedDepreciationBook Value

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Description: University Car Wash purchased new soap dispensing equipment that cost $249,000 including installation. The companyestimates that the equipment will have a residual value of $25,500. 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 $249,000 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 1 2 3 4 5 6 Hours Used 2,900 1,800 1,900 2,100 1,900 1,900 Problem 7-5A (Algo) 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.)

University Car Wash purchased new soap dispensing equipment that cost $249,000 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 1 2 3 4 5 6 Hours Used 2,900 1,800 1,900 2,100 1,900 1,900 Problem 7-5A (Algo) 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.)

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 $231,000 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 1 Hours Used 2,900 2 1,800 3 1,900 4 2,100 5 6 1,900 1,900 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 Depreciation Year Expense 1 2 3 4 5 Accumulated Depreciation Book Value
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