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.

Actual use per year was as follows:

Year Hours Used

1 3,100

2 1,600

3 1,700

4 2,300

5 2,100

6 1,700

1. Prepare a depreciation schedule for six years using the straight-line method.

2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)

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.)