question archive University Car Wash built a deluxe car wash across the street from campus
University Car Wash built a deluxe car wash across the street from campus
Subject:AccountingPrice: Bought3
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. 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 Prepare a depreciation schedule for six years using the straight-line method Prepare a depreciation schedule for six years using the double-declining-balance method Prepare a depreciation schedule for six years using the activity-based method.
