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Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] University Car Wash purchased new

Required information

Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4)

[The following information applies to the questions displayed below.]

University Car Wash purchased new soap dispensing equipment that cost $237,000 including installation. The company estimates that the equipment will have a residual value of $28,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows:

Year Hours Used
1 2,700
2 2,000
3 2,100
4 1,900
5 1,700
6 2,100

Problem 7-5A (Algo) Part 2

2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)

UNIVERSITY CAR WASH
Depreciation ScheduleDouble-Declining-Balance
End of Year Amounts
Year Depreciation Expense Accumulated Depreciation Book Value
1
2
3
4
5
6
Total

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