7.5

Required information Problem 7-5B (Algo) Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] One Stop Copy purchased a new copy machine. The new machine cost $120,000 including installation. The company estimates the equipment will have a residual value of $30,000. One Stop 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 Hours Used 2,500 2,200 1,900 2,000 123+ 4 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. Round answers to the nearest whole dollar.) ONE STOP COPY Depreciation Schedule-Activity-Based End of Year Amounts Year Depreciation Expense Book Value 1 2 3 4 Total $ 0 Accumulated Depreciation