Question: Problem 7 - 5 A ( Algo ) Determine depreciation under three methods ( LO 7 - 4 ) [ The following information applies to

 Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The following

Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4)
[The following information applies to the questions displayed below.]
University Car Wash purchased new soap dispensing equipment that cost $249,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows:
\table[[Year,Hours Used],[1,2,900],[2,1,800],[3,1,900],[4,2,100],[5,1,900],[6,1,900]]
Problem 7-5A (Algo) 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.)
\table[[UNIVERSITY CAR WASH],[Depreciation Schedule-Activity-Based],[End of Year Amounts],[Year,\table[[Depreciation],[Expense]],\table[[Accumulated],[Depreciation]],Book Value],[1,,,],[2,,?bar(c),],[3,,,],[4,,,],[5,,,],[6,,,],[Total,0,,]]
information applies to the questions displayed below.] University Car Wash purchased new

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