60.1K

Verified Solution

Link Copied!

$!$

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:

$\backslash$table$[[$Year$,$Hours Used$],[1,2,700],[2,1,500],[3,1,600],[4,2,400],[5,2,200],[6,1,600]]$

Prepare a depreciation schedule for six years using the double$-$declining$-$balance method. $($Do not round your intermediate calculations.$)$

Answer is not complete.

$\backslash$table$[[$UNIVERSITY CAR WASH$],[$Depreciation Schedule$-$Double$-$Declining$-$Balance,$],[$Year$,\backslash$table$[[$Depreciation$],[$Expense$]],\backslash$table$[[$Accumulated$],[$Depreciation$]],$Book Value,$],[1,$$$,45,225x,$$$45,225x,],[2,25,125x,,,]]$

$!$

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:

$\backslash$table$[[$Year$,$Hours Used$],[1,2,700],[2,1,500],[3,1,600],[4,2,400],[5,2,200],[6,1,600]]$

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.$)$

$\backslash$table$[[$UNIVERSITY CAR WASH$],[$Depreciation Schedule$-$Activity$-$Based$],[$End of Year Amounts$],[$Year$,\backslash$table$[[$Depreciation$],[$Expense$]],\backslash$table$[[$Accumulated$],[$Depreciation$]],$Book Value$],[1,,,],[2,,,],[3,,,],[4,,,],[5,,,],[6,,,]]$

Answer & Explanation Solved by verified expert

See Answer