University Car Wash built a deluxe car wash across the street from campus. The new machines cost $258,000 including installation. The company estimates that the equipment will have a residual value of $28,500. 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: 1) Year 2. 1 2 3 4 5 6 Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations. Round your answers to the nearest dollar amount.) Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations. Round your answers to the nearest dollar amount.) 3) Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.) Hours Used 2,700 1,500 1,600 2,400 2,200 2,100
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $258,000 including installation. The company estimates that the equipment will have a residual value of $28,500. 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: 1) Year 2. 1 2 3 4 5 6 Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations. Round your answers to the nearest dollar amount.) Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations. Round your answers to the nearest dollar amount.) 3) Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.) Hours Used 2,700 1,500 1,600 2,400 2,200 2,100
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 15PB: Urquhart Global purchases a building to house its administrative offices for $500,000. The best...
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