Problem 7-58 Determine depreciation under three methods (L07-4) The following information applies to the questions displayed below) Cheetah Copy purchased a new copy machine. The new machine cost $100,000 including installation. The company estimates the equipment will have a residual value of $25,000 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: Year 1 2 3 4 Hours Used 3.000 2.000 1200 2.800 References Section Break Problem 7.58 Determine depreciation under three methods (74) Problem 7-5B Part 1 Required: 1. Prepare a depreciation schedule for four years using the straight-line method. (Do not round your intermediate calculations.) Year 1 CHEETAH COPY Depreciation Schedule-Straight-Line End of Year Amounts Depreciation Accumulated Book Value Expense Depreciation $ 18,750 $ 18,750 $ 81,250 18.750 37,500 62,500 18.750 56.250 43,750 18.750 75,000 25,000 $ 75,000 2 3 4 Total Problem 7-5B Part 2 2. Prepare a depreciation schedule for four years using the double declining balance method. (Hint: The asset will be depreciated in only two years.) (Don intermediate calculations.) CHEETAH COPY Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Accumulated Year Expense Book Value Depreciation 1 $ 20,625 2 3 4 Total $ 20,625 Problem 7-5B Part 3 3. Prepare a depreciation schedule for four years using the activity-based method (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Accumulated Year Expense Depreciation Book Value 1 2 3 4 Total Problem 7-5B Part 2 2. Prepare a depreciation schedule for four years using the double-declining balance method. (Hint: The asset will be depreciated in only two years.) (Do not round your intermediate calculations.) CHEETAH COPY Depreciation Schedule-Double-Declining-Balance End of Year Amounts Year Depreciation Accumulated Expense Book Value Depreciation 1 $ 20,625 2 4 Total $ 20.625 Please complete parta and 3