[The following information applies to the questions displayed below.] University

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[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 $234,000 including installation. The company estimates that the equipment will have a residual value of $27,000. 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 2,800 2 1,900 3 2,000 4 2,000 5 1,800 6 1,500 .Prepare a depreciation schedule for six years using the double-declining-balance method.Prepare a depreciation schedule for six years using the activity-based metho

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Depreciation Schedule Year Book Value Depreciation Depreciation Accumulated Book Value Year Start Percent Expense Depreciation Year End 2011 $234,000 33.33% $78,000 $78,000 $156,000 2012 $156,000 33.33% $52,000 $130,000 $104,000 2013 $104,000 33.33% $34,667 $164,667 $69,333 2014 $69,333 33.33% $23,111 $187,778 $46,222 2015 $46,222 33.33% $15,407 $203,185 $30,815 2016 $30,815 12.38% $3,815 $207,000 $27,000 Cost        234,000 Salvage Value          27,000 Depreciation        207,000 Life 6 Depreciation for each year          34,500 Depreciation % 16.6666667 2 Double decline depreciation rte 33.3333333

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