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University Car Wash purchased new soap dispensing equipment that cost $216,000 including installation. The company estimates that the equipment will have a residual value of
University Car Wash purchased new soap dispensing equipment that cost $216,000 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 | 2,900 |
2 | 1,300 |
3 | 1,400 |
4 | 2,600 |
5 | 2,400 |
6 | 1,900 |
2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)
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