Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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:
Year | Hours Used |
1 | 3,000 |
2 | 1,200 |
3 | 1,300 |
4 | 2,700 |
5 | 2,500 |
6 | 1,800 |
Prepare a depreciation schedule for six years using the double-declining-balance method.
and the activity method with the same information! :
Thank you!
UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of year amounts Depreciation Accumulated Book Value Expense Depreciation $ 71,000 Year 1 2 47,333 3 31,556 4 21,037 5 14,025 6 8,549 193,500 Total $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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