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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
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.
Year | Hours Used |
1 | 3,100 |
2 | 1,100 |
3 | 1,200 |
4 | 2,800 |
5 | 2,600 |
6 | 1,200 |
Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) 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.)PLeasePleasede Depreciation expense, accumulated deprecitaion, and book values. |
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