Question

University Car Wash built a deluxe car wash across the street from campus. The new machines 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.

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 .......3,100
2 .......1,100
3 .......1,200
4 .......2,800
5 .......2,600
6 .......1,200



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  • CreatedJuly 15, 2014
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