Question
[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 $261,000 including installation. The company estimates that the equipment will have a residual value of $27,000. 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 | Hours Used |
1 | 2,800 |
2 | 1,400 |
3 | 1,500 |
4 | 2,500 |
5 | 2,300 |
6 | 1,500 |
1.
value: 5.88 points
Required information
Required:
1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
References
eBook & Resources
WorksheetDifficulty: 3 HardLearning Objective: 07-04 Calculate depreciation of property, plant, and equipment.
Check my work
2.
value: 5.88 points
Required information
2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)
References
eBook & Resources
WorksheetDifficulty: 3 HardLearning Objective: 07-04 Calculate depreciation of property, plant, and equipment.
Check my work
3.
value: 5.88 points
Required information
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.)
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