University Car Wash purchased new soap dispensing equipment that cost $270,000 including installation. The company estimates...

 

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University Car Wash purchased new soap dispensing equipment that 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 Year 1 2 Problem 7-5A (Static) Part 2 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) 3 4 5 6 Total UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts 23555HY Hours Used 3,100 1,100. 1,200 2,800 2,600 1,200 $ Depreciation Expense $ 90,000 60,000 40,000 26,667 17,778 234,445 Accumulated Depreciation $ Book Value 90,000 $ 150,000 190,000 216,667 234,445 180,000 University Car Wash purchased new soap dispensing equipment that 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 Year 1 2 Problem 7-5A (Static) Part 2 2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) 3 4 5 6 Total UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts 23555HY Hours Used 3,100 1,100. 1,200 2,800 2,600 1,200 $ Depreciation Expense $ 90,000 60,000 40,000 26,667 17,778 234,445 Accumulated Depreciation $ Book Value 90,000 $ 150,000 190,000 216,667 234,445 180,000

Answer rating: 100% (QA)

Depreciation expense on straight line 270000 24000 6 41000 Depreciation rate 41000 270000 24000 1667 ... View the full answer