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 1 Hours Used 3,100 1,100 1,200 2,800 2,600 1,200
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 1 Hours Used 3,100 1,100 1,200 2,800 2,600 1,200
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 $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
Year
1
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. Accumulated
Expense
Depreciation
calculations.)
Year
1
2
1
2
Year
Year
3
4
1
2
3
4
5
3
2
5
4
5
6
6
Total
$
6
Total $
$
UNIVERSITY CAR WASH
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
Hours Used
3,100
1,100
1,200
Year
2,800
2,600
1,200
Required information
[The following information applies to the questions displayed below]
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:
2
4
41,000
41,000
Depreciation Accumulated
Expense
Depreciation
6
$
41,000 $
41,000
41,000
41,000
41,000
41,000
246,000
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.)
41,000
82,000
Hours Used
3,100
1,100
1,200
2,800
2,600
1,200
Depreciation
Expense
Book Value
www.ving an awwwwwmmy-valurive unu your mermediate
41,000
82.000
UNIVERSITY CAR WASH
Depreciation Schedule-Activity-Based
End of Year Amounts
Accumulated
Depreciation
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.)
Book Value
Depreciation Accumulated
Expense
Depreciation
Book Value
UNIVERSITY CAR WASH
Depreciation Schedule-Activity-Based
End of Year Amounts
Book Value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2781b477-a13d-4959-ac03-8179b0539c9f%2F9e407096-b31a-48de-b225-e4e28028724c%2Fjnnghho_processed.jpeg&w=3840&q=75)
Transcribed Image Text:"
Required information
[The following information applies to the questions displayed below.]
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
Year
1
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. Accumulated
Expense
Depreciation
calculations.)
Year
1
2
1
2
Year
Year
3
4
1
2
3
4
5
3
2
5
4
5
6
6
Total
$
6
Total $
$
UNIVERSITY CAR WASH
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
Hours Used
3,100
1,100
1,200
Year
2,800
2,600
1,200
Required information
[The following information applies to the questions displayed below]
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:
2
4
41,000
41,000
Depreciation Accumulated
Expense
Depreciation
6
$
41,000 $
41,000
41,000
41,000
41,000
41,000
246,000
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.)
41,000
82,000
Hours Used
3,100
1,100
1,200
2,800
2,600
1,200
Depreciation
Expense
Book Value
www.ving an awwwwwmmy-valurive unu your mermediate
41,000
82.000
UNIVERSITY CAR WASH
Depreciation Schedule-Activity-Based
End of Year Amounts
Accumulated
Depreciation
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.)
Book Value
Depreciation Accumulated
Expense
Depreciation
Book Value
UNIVERSITY CAR WASH
Depreciation Schedule-Activity-Based
End of Year Amounts
Book Value
![3
0
Required information
[The following information applies to the questions displayed below.]
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
1
Hours Used
3,100)
1,100
1,200
2,800
2,600
1,200
Required:
1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Straight-Line
End of Year Amounts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2781b477-a13d-4959-ac03-8179b0539c9f%2F9e407096-b31a-48de-b225-e4e28028724c%2F0rbacnc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3
0
Required information
[The following information applies to the questions displayed below.]
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
1
Hours Used
3,100)
1,100
1,200
2,800
2,600
1,200
Required:
1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
UNIVERSITY CAR WASH
Depreciation Schedule-Straight-Line
End of Year Amounts
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