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

University Car Wash purchased new soap dispensing equipment that cost $258,000 including installation. The company estimates that the equipment will have a residual value of $28,500. 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:

Year	Hours Used
1	2,700
2	1,500
3	1,600
4	2,400
5	2,200
6	2,100

Prepare a depreciation schedule for six years using the straight-line method.