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 years using the double-declining-balance method.
2. Prepare a depreciation schedule for six years using the activity-based method.