1) University Car Wash built a deluxe car wash across the street from campus. The new machines cost $240,000 including installation. The company estimates that the equipment will have a residual value of $30,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows: Year Hours Used 1 2,600 2 2,100 3 2,200 4 1,800 5 1,600 6 1,700 Picture 1) Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) 2)University Car Wash built a deluxe car wash across the street from campus. The new machines cost $240,000 including installation. The company estimates that the equipment will have a residual value of $30,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows: Year Hours Used 1 2,600 2 2,100 3 2,200 4 1,800 5 1,600 6 1,700 Picture 2) Prepare a depreciation schedule for six years using the activity-based method.
1) University Car Wash built a deluxe car wash across the street from campus. The new machines cost $240,000 including installation. The company estimates that the equipment will have a residual value of $30,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows:
| Year | Hours Used |
| 1 | 2,600 |
| 2 | 2,100 |
| 3 | 2,200 |
| 4 | 1,800 |
| 5 | 1,600 |
| 6 | 1,700 |
Picture 1) Prepare a
2)University Car Wash built a deluxe car wash across the street from campus. The new machines cost $240,000 including installation. The company estimates that the equipment will have a residual value of $30,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows:
| Year | Hours Used |
| 1 | 2,600 |
| 2 | 2,100 |
| 3 | 2,200 |
| 4 | 1,800 |
| 5 | 1,600 |
| 6 | 1,700 |
Picture 2) Prepare a depreciation schedule for six years using the activity-based method.
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