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University Car Wash purchased new soap dispensing equipment that cost $255,000 including installation. The company estimates that the equipment will have a residual value of
University Car Wash purchased new soap dispensing equipment that cost $255,000 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 |
Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)
UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts \begin{tabular}{|c|c|c|c|} \hline Year & DepreciationExpense & AccumulatedDepreciation & Book Value \\ \hline 1 & & $ & \\ \hline 2 & & & \\ \hline 3 & & & \\ \hline 4 & & & \\ \hline 5 & & & \\ \hline 6 & & & \\ \hline Total & $ & & \\ \hline \end{tabular}
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