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 $258,000 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 | 1,500 |
3 | 1,600 |
4 | 2,400 |
5 | 2,200 |
6 | 2,100 |
2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)
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