University Car Wash purchased new soap dispensing equipment that cost $270,000 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 2355NK Hours Used 3,100 1,100 1,200 2,800 2,600 1,200 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rete" to 2 derimal places and use this amount in all subsequent calculations.)
University Car Wash purchased new soap dispensing equipment that cost $270,000 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 2355NK Hours Used 3,100 1,100 1,200 2,800 2,600 1,200 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rete" to 2 derimal places and use this amount in all subsequent calculations.)
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:University Car Wash purchased new soap dispensing equipment that cost $270,000 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
AUAWNHO
Hours Used
3,100
1,100
1,200
2,800
2,600
1,200
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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