Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help University Car Wash built a deluxe car wash across the street from campus. The new machines cost $222,000 including installation. The company estimates

Please help
image text in transcribed
image text in transcribed
image text in transcribed
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $222,000 including installation. The company estimates that the equipment will have a residual value of $21,000. 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 2 3 4 5 6 Hours Used 2,700 1,500 1,600 2,400 2,200 1,600 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 Depreciation Accumulated Book Value Expense Depreciation Year 1 2 3 5 6 Total $ 0 University Car Wash built a deluxe car wash across the street from campus. The new machines cost $222,000 including installation. The company estimates that the equipment will have a residual value of $21000. 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 2. 3 4 5 6 Hours Used 2,700 1,500 1,600 2,400 2,200 1,600 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 Book Value Depreciation Year 1 2 3 4 5 6 Total $ University Car Wash built a deluxe car wash across the street from campus. The new machines cost $222.000 including Installation. The company estimates that the equipment will have a residual value of $21000. 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: Hours Used 2,700 2 1,500 Year 1 3 4 5 6 1,600 2,400 2,200 1,500 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 Depreciation Schedule-Activity-Based End of year amounts Depreciation Accumulated Book Value Expense Depreciation Year 1 2 3 4 6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Anthony A Atkinson, Robert S Kaplan

5th Edition

136005314, 978-0136005315

Students also viewed these Accounting questions