Prepare a depreciation schedule for six years

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Reference no: EM131521291

Question: University Car Wash built a deluxe car wash across the street from campus. The new machines cost $240,000 including installation. The company estimates that the equipment will have a residual value of $30,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours.

Required: Prepare a depreciation schedule for six years using the following methods:

1. Straight-line.

2. Double-declining-balance.

3. Activity-based. Actual use per year was as follows:

Year Hours Used

1 2,600

2 2,100

3 2,200

4 1,800

5 1,600

6 1,700

Reference no: EM131521291

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