70.2K

Verified Solution

Link Copied!

University Car Wash purchased new soap dispensing equipment that cost $$225,000$ including installation. The company estimates that the equipment will have a residual value of $$22,500.$ 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: Year Hours Used $13,10021,60031,70042,30052,10061,700$Prepare a depreciation schedule for six years using the double$-$declining$-$balance method.$($Do not round your intermediate calculations.$)$

$1$

Required information

$[$The following information applies to the questions displayed below.$]$

University Car Wash purchased new soap dlspensing equipment that cost $$270,000$ including installation. The company estimates that the equipment will have a residual value of $$24,000.$ 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$],[1,3,100],[2,1,100],[3,1,200],[4,2,800],[5,2,600],[6,1,200]]$

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

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

Prev

of $9$

Answer & Explanation Solved by verified expert

See Answer