University Car Wash purchased new soap dispensing equipment that cost $222,000 including installation. The company estimates that the equipment will have a residual value of $21,000. 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 1 2 3 4 5 6 Hours Used 2,700 1,500 1,600 2,400 2,200 1,600 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)

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Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below.]
University Car Wash purchased new soap dispensing equipment that cost $222,000 including installation. The company
estimates that the equipment will have a residual value of $21,000. 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
1
2
3
4
5
6
Year
Hours Used
2,700
1,500
1,600
2,400
2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate
calculations.)
2,200
1,600
UNIVERSITY CAR WASH
Depreciation Schedule-Double-Declining-Balance
End of Year Amounts
Depreciation
Expense
1
2
3
4
5
6
Total $
Accumulated
Depreciation
Book Value
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Transcribed Image Text:Required information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $222,000 including installation. The company estimates that the equipment will have a residual value of $21,000. 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 1 2 3 4 5 6 Year Hours Used 2,700 1,500 1,600 2,400 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) 2,200 1,600 UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Expense 1 2 3 4 5 6 Total $ Accumulated Depreciation Book Value < Prev 17 18 of 18 www Next >
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