Cheetah Copy purchased a new copy machine. The new machine cost $130,000 including installation. The company estimates the equipment will have a residual value of $32,500. 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:

Year Hours Used

1 2,000

2 2,000

3 2,000

4 3,200

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