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0 Required information Problem 7-5A Determine depreciation under three methods (L07-4) [The following information applies to the questions displayed below) 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. Actual use per year was as follows Year 1 3 4 Hours Used 3,100 1,100 1,200 2,800 2,600 1,200 Problem 7-5A Part 1 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Straight-Line End of year amounts Depreciation Accumulated Book Value Expense Depreciation Year 1 2 3 4 5 6 Total S Problem 7-5A Rart 2 2. Prepare a depreciation schedule for six years using the double-declining balance method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of year amounts Year Depreciation Accumulated Expense Depreciation Book Value 1 2 3 4 5 6 Total Problem 7-5A Part 3 3. Prepare a depreciation schedule for six years using the activity-based method (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.) UNIVERSITY CAR WASH Depreciation Schedule - Activity-Based End of year amounts Depreciation Accumulated Book Value Expense Depreciation Year 1 2 3 4 5 6 Total