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 $264,000 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: Hours Used 1,300 Year 2,900 1 2 3 1.600 2,600 2,400 1.900 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 Expense Book Value Depreciation Year + 2 3 4 5 6 Total 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 $264,000 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: Year 1 3 Hours Used 2,900 1.300 1,400 2,600 2,400 1.900 5 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 Accumulated Book Value Expense Depreciation Year Depreciation 1 2 3 4 5 6 Total