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

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University Car Wash purchased new soap dispensing equipment that cost $237,000 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	2,000
3	2,100
4	1,900
5	1,700
6	2,100

Problem 7-5A (Algo) 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 ScheduleStraight-Line
End of Year Amounts
Year	Depreciation Expense	Accumulated Depreciation	Book Value
1
2
3
4
5
6
Total	$0