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niversity Car Wash purchased new soap dispensing equipment that 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   2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)

niversity Car Wash purchased new soap dispensing equipment that 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   2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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niversity Car Wash purchased new soap dispensing equipment that 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

 

2. Prepare a depreciation schedule for six years using the double-declining-balance 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.) UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Year Expense 1 2 3 4 5 6 Total $ 0 Accumulated Depreciation Book Value
Transcribed Image Text:2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Year Expense 1 2 3 4 5 6 Total $ 0 Accumulated Depreciation Book Value
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