Question

University Car Wash built a deluxe car wash across the street from campus. The new machines cost $213,000 including installation. The company estimates that the equipment will have a residual value of $19,500. 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 Used1 3,0002 1,2003 1,3004 2,7005 2,5006 1,8002. Prepare a depreciation schedule for six years using the double-declining-balance method.3. Prepare a depreciation schedule for six years using the activity-based method.

Answer 1

Answer:

The depreciation schedule for six years is attached below.

Explanation: