Cheetah Copy purchased a new copy machine. The new machine cost $120,000 including installation. The company estimates the equipment will have a residual value of $30,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows:YearHours Used12,50022,20031,90042,000 Required:1. Prepare a depreciation schedule for four years using the straight-line method. (Do not round your intermediate calculations.) CHEETAH COPYDepreciation Schedule—Straight-LineEnd of Year AmountsYearDepreciation ExpenseAccumulated DepreciationBook Value1$22,500$22,500 222,500 322,500 422,500 Total$90,000

The term "depreciation" refers to an accounting technique used to spread out the expense of a…

Answered: heetah Copy purchased a new copy…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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Question

Cheetah Copy purchased a new copy machine. The new machine cost $120,000 including installation. The company estimates the equipment will have a residual value of $30,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows:

Year	Hours Used
1	2,500
2	2,200
3	1,900
4	2,000

Required:

1. Prepare a depreciation schedule for four years using the straight-line method. (Do not round your intermediate calculations.)

CHEETAH COPY
Depreciation Schedule—Straight-Line
End of Year Amounts
Year	Depreciation Expense	Accumulated Depreciation	Book Value
1	$22,500	$22,500
2	22,500
3	22,500
4	22,500
Total	$90,000