Cheetah Copy purchased a new copy machine. The new machine cost $128,000 including installation. The company estimates the equipment will have a residual value of $32,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows:

Prepare a depreciation schedule for four years using the activity-based method.

Year Hours Used 2,100 1,900 1,900 3,300 CHEETAH COPY Depreciation ScheduleStraight-Line End of Year Amounts Depreciation Accumulated Book Year Expense Depreciation Value 2 4 Total