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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

 

 

 

 

 

 

Required:

1.

Prepare a depreciation schedule for six years using the straight-line method. (Do not round intermediate calculations. Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)

 

UNIVERSITY CAR WASH
  Calculation End of year amounts
 Year      Depreciable
    Cost
         Depreciation
        Rate
          Depreciation
           Expense
          Accumulated
           Depreciation
            Book Value
1 $

 
     
     
 
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