contestada

[The following information applies to the questions displayed below.] University Car Wash built a deluxe car wash across the street from campus. The new machines cost $258,000 including installation. The company estimates that the equipment will have a residual value of $28,500. 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 Hours Used 1 2,700 2 1,500 3 1,600 4 2,400 5 2,200 6 2,100 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)

Respuesta :

anthougo

Answer:

University Car Wash

Depreciation Schedule

Date        Cost of Asset      Depreciation     Accumulated         Net book

                                              Expense          Depreciation             Value

Year 1         $258,000          $38,250              $38,250             $219,750

Year 2          258,000            38,250                 76,500                181,500

Year 3          258,000            38,250                 114,750               143,250

Year 4          258,000            38,250               153,000               105,000

Year 5          258,000            38,250               191,250                 66,750

Year 6          258,000            38,250             229,500                28,500

Explanation:

a) Data and Calculations:

Cost of the new washing machines = $258,000

Estimated residual value = $28,500

Depreciable amount = $229,500 ($258,000 - $28,500)

Straight-line annual depreciation expense = $38,250 ($229,500/6)

Estimated useful life = 6 years

Usage in hours = 12,500 hours

Actual use per year:

Year Hours Used

1                  2,700

2                 1,500

3                 1,600

4                2,400

5               2,200

6                2,100

Total       12,500

Otras preguntas