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Required information Problem 7-5B Determine depreciation under three methods (L07-4) [The following information applies to the questions displayed below.) Cheetah Copy purchased a new copy

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Required information Problem 7-5B 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 $124.000 Including installation. The company estimates the equipment will have a residual value of $31.000. 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 Hours Used 1 2,000 2,000 2,000 3,000 2 3 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.) CHEETAH COPY Depreciation Schedule-Straight-Line End of Year Amounts Depreciation Accumulated Book Value Expense Depreciation Year 1 2 3 4 Total ! Required information Problem 7-5B 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 $124.000 including installation. The company estimates the equipment will have a residual value of $31,000. 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: -4 Year 1 2 Hours Used 2,000 2,000 2,000 3,000 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 Depreciation Accumulated Year Book Value Expense Depreciation 1 2 3 4 Total ! Required information Problem 7-5B 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 $124,000 including installation. The company estimates the equipment will have a residual value of $31,000. 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 Hours Used 1 2,000 2 2,000 3 2,000 4 3,880 WN 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 Schedulo-Activity-Based End of Year Amounts Depreciation Accumulated Book Value Expense Depreciation Year 1 2 GON 3 4 Total

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