3. Prepare a depreciation schedule for four years using the activity-based method.

Cheetah Copy purchased a new copy machine. The new machine cost $122,000 including installation. The company estimates the equipment will have a residual value of $30,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year 2 3 4 Hours Used 2,000 2,000 2,000 3,200 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) CHEETAH COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Accumulated Book Value Expense Depreciation Year 1 2 3 4 30,500 Total $ 0