University Car Wash purchased new soap dispensing equipment that 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 1 Hours Used 2,600 2 2,100 3 2,200 4 1,800 5 1,600 6 1,700 epare a depreciation schedule for six years using the double

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
University Car Wash purchased new soap dispensing equipment that 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
123456
Hours Used
2,600
2,100
2,200
1,800
1,600
1,700
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
Accumulated
Depreciation
Book Value
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that 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 123456 Hours Used 2,600 2,100 2,200 1,800 1,600 1,700 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 Accumulated Depreciation Book Value
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