Question
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $213,000 including installation. The company estimates that the
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $213,000 including installation. The company estimates that the equipment will have a residual value of $19,500. 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:
YearHours Used13,00021,20031,30042,70052,50061,800
3.Prepare 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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started