The felowing information applies to the questions displeyed below University Car

Question

The felowing information applies to the questions displeyed below University Car wash buit a deluxe car wash across the street from campus. The new machines cost S237 0 inch company estimates that the equipment will have a residual value of $28,500. University Car Wash also estimates it will six years or about 12,500 total hours Actual use per year was as follows ncluding Installation. The Year Hours Use 2,700 2,000 2,100 1900 1,700 2,300 Required information 3.00 points 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 Year Expense Depreciation Book Value Total References eBook & Resources 3.50 points Required information a depreciation schedule for six years using the double-dedlining-balance method. (Do not

Explanation / Answer

1) Year Depreciation Expenses Accumulated depreciation Book value 1 $             34,750 $               34,750 $             202,250 2 $             34,750 $               69,500 $             167,500 3 $             34,750 $             104,250 $             132,750 4 $             34,750 $             139,000 $               98,000 5 $             34,750 $             173,750 $               63,250 6 $             34,750 $             208,500 $               28,500 Depreciation=(237000-28500)/6=$34,750 2) Year Depreciation Expenses Accumulated depreciation Book value 1 $       79,000.00 $         79,000.00 $       158,000.00 2 $       52,666.67 $       131,666.67 $       105,333.33 3 $       35,111.11 $       166,777.78 $         70,222.22 4 $       23,407.41 $       190,185.19 $         46,814.81 5 $       15,604.94 $       205,790.12 $         31,209.88 6 $          2,709.88 $       208,500.00 $         28,500.00 Depreciation rate=100%/6*2 3) Year Depreciation Expenses Accumulated depreciation Book value 1 $             45,036 $               45,036 $             191,964 2 $             33,360 $               78,396 $             158,604 3 $             35,028 $             113,424 $             123,576 4 $             31,692 $             145,116 $               91,884 5 $             28,356 $             173,472 $               63,528 6 $             35,028 $             208,500 $               28,500

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