Accounting Chapter 7 Homework Correct End Year Amounts Depreciation Accumulated Book
Student Name: Instructor
Class: McGraw-Hill/Irwin
Problem 07-05
Requirement 1:
University Car Wash
Straight Line
Calculation
Depreciable
Depreciation
X
Cost
Rate
246,000
1/6
246,000
1/6
246,000
1/6
246,000
1/6
246,000
1/6
246,000
1/6
Year
1
2
3
4
5
6
=
Total
End of Year Amounts
Depreciation Accumulated
Book
Expense
Depreciation
Value
41,000
41,000
229,000
41,000
82,000
188,000
41,000
123,000
147,000
41,000
164,000
106,000
41,000
205,000
65,000
41,000
246,000
24,000
246,000
Correct!
Correct!
Requirement 2:
University Car Wash
Double-declining-balance
Year
1
2
3
4
5
6
Calculation
Beginning
Depreciation
Book Value
X
Rate
270,000
0.33333
180,000
0.33333
120,000
0.33333
80,000
0.33333
53,333
0.33333
35,556
0.33333
=
Total
End of Year Amounts
Depreciation Accumulated
Book
Expense
Depreciation
Value
90,000
90,000
180,000
60,000
150,000
120,000
40,000
190,000
80,000
26,667
216,667
53,333
17,778
234,444
35,556
11,556
246,000
24,000
246,000
Correct!
Correct!
Requirement 3:
University Car Wash
Activity-based
Year
1
2
3
4
5
6
Total
Calculation
Hours
Depreciation
X
Used
Rate
3,100
$
20.50
1,100
$
20.50
1,200
$
20.50
2,800
$
20.50
2,600
$
20.50
1,200
$
20.50
12,000
Correct!
=
End of Year Amounts
Depreciation Accumulated
Book
Expense
Depreciation
Value
63,550
63,550
206,450
22,550
86,100
183,900
24,600
110,700
159,300
57,400
168,100
101,900
53,300
221,400
48,600
24,600
246,000
24,000
246,000
Correct!
Correct!
Given Data P07-05:
UNIVERSITY CAR WASH
Cost of new car wash machines
Estimated residual value
Machine life in years
Machine life in hours
Actual use per year
Year
1
2
3
4
5
6
Hours
Used
3,100
1,100
1,200
2,800
2,600
1,200
$
$
270,000
24,000
6
12,000
Student Name: Instructor
Class: