Question
In: Accounting
University Car Wash built a deluxe car wash across the street from campus. The new machines...
University Car Wash built a deluxe car wash across the street
from campus. The new machines 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 |
1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
2. Prepare a depreciation schedule for six
years using the double-declining-balance method. (Do not
round your intermediate calculations.)
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.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
University Car Wash built a deluxe car wash across the street from campus. The new machines...
University Car Wash built a deluxe car wash across the street
from campus. The new machines cost $240,000 including installation.
The company estimates that the equipment will have a residual value
of $30,000. 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 Hours Used 1 2,600 2 2,100 3 2,200 4
1,800 5 1,600 6 1,700 1. Prepare a depreciation schedule for six...
University Car Wash built a deluxe car wash across the street from campus. The new machines...
University Car Wash built a deluxe car wash across the street
from campus. The new machines cost $261,000 including installation.
The company estimates that the equipment will have a residual value
of $27,000. 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
Hours
Used
1
2,800
2
1,400
3
1,500
4
2,500
5
2,300
6
1,500
Required:
1. Prepare a depreciation schedule for...
University Car Wash built a deluxe car wash across the street from campus. The new machines...
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 Hours Used 1 2,900 2 1,300 3 1,400 4
2,600 5 2,400 6 1,900
1. Prepare a depreciation schedule for six...
University Car Wash built a deluxe car wash across the street from campus. The new machines...
University Car Wash built a deluxe car wash across the street
from campus. The new machines cost $255,000 including installation.
The company estimates that the equipment will have a residual value
of $22,500. 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
3,100
2
1,600
3
1,700
4
2,300
5
2,100
6
1,700
Problem 7-5A Part 1
Required:
1. Prepare...
University Car Wash built a deluxe car wash across the street from campus. The new machines...
University Car Wash built a deluxe car wash across the street
from campus. The new machines cost $234,000 including installation.
The company estimates that the equipment will have a residual value
of $27,000. 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
Hours Used
1
2,800
2
1,900
3
2,000
4
2,000
5
1,800
6
1,500
1. Prepare a depreciation schedule for six...
University Car Wash built a deluxe car wash across the street from campus.
University Car Wash built a deluxe car wash across the street from campus. The new machines 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:
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $225,000 including installation.
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $225,000 including installation. The company estimates that the equipment will have a residual value of $22,500. 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
3,100
2
1,600
3
1,700
4
2,300
5
2,100
6
1,700
Required:
1. Prepare a depreciation schedule...
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Problem: A university administrator is interested in whether a new building can be planned and built...
Problem:
A university administrator is interested in whether a new
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