Response to the following problem:
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
Prepare a depreciation schedule for six years using the straight-line method
Prepare a depreciation schedule for six years using the double-declining-balance method
Prepare a depreciation schedule for six years using the activity-based method.