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The following information applies to the questions displayed below. University Car Wash built a deluxe car wash across the street from campus. The new machines

The following information applies to the questions displayed below.

University Car Wash built a deluxe car wash across the street from campus. The new machines cost $225,000 including installation. The company estimates that the equipment will have a residual value of $22,500. 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

3,100

2

1,600

3

1,700

4

2,300

5

2,100

6

1,700

1. Prepare a depreciation schedule for six years using the straight-line method.

b) Prepare a depreciation schedule for six years using the double-declining-balance method

c) Prepare a depreciation schedule for six years using the activity-based method

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