University Car Wash built a deluxe car wash across the street from campus. The new machines cost $255,000 including inst

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University Car Wash Built A Deluxe Car Wash Across The Street From Campus The New Machines Cost 255 000 Including Inst 1 (95.98 KiB) Viewed 32 times

University Car Wash built a deluxe car wash across the street from campus. The new machines 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 1 2 3 4 5 6 Total Year 1 2 3 4 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) $ 5 6 $ Depreciation Expense Hours Used 3,100 1,600 1,700 2,300 2,100 1,700 UNIVERSITY CAR WASH Depreciation Schedule-Straight-Line End of year amounts 38,750 38,750 38,750 38,750 38,750 38,750 232,500 Accumulated Depreciation $ 38,750 $ 77,500 193,750 232,500 Book Value 216,250 177,500 22,500 Screenshot

University Car Wash built a deluxe car wash across the street from campus. The new machines 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 1 Year 1 2 3 4 5 6 Total 2 3 3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decima places and use this amount in all subsequent calculations.) $ 4 5 6 $ Hours Used 3,100 1,600 1,700 2,300 2,100 1,700 Depreciation Expense UNIVERSITY CAR WASH Depreciation Schedule-Activity-Based End of year amounts Accumulated Depreciation 57,660 29,760 87,420 $ 57,660 29,760 Book Value Screenshot