University Car Wash built a deluxe car wash across the street from campus. The new machines cost $249,000 including…

University Car Wash built a deluxe car wash across the street from campus. The new machines cost $249,000 including…

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University Car Wash built a deluxe car wash across the street from campus. The new machines cost $249,000 including…
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University Car Wash built a
deluxe car wash across the
street from campus. The
new machines cost
$249,000 including
installation. The company
estimates that the
equipment will have a
residual value of $25,500.
University Car Wash also
estimates it will use the
machine for six years or
about 12,500 total hours.
Actual use per year was as
follows:
Year
1
2
2345 10
6
Hours Used
2,900
1,800
1,900
2,100
1,900
1,900 2. Prepare a depreciation schedule for six
years using the double-declining-balance
method. (Do not round your
intermediate
calculations.)
Year
1
2
UNIVERSITY CAR WASH
Depreciation Schedule-Double-Declinin
End of year amounts
Accumulated
Depreciation
Depreciation
Expense
$
3
4
5
6
Total $
83,000
53
83,053

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To prepare a depreciation schedule using the double declining balance method we need to calculate th
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