Question

Cheetah Copy purchased a new copy machine. The new machine cost$132,000 including installation. The company estimates theequipment will have a residual value of $33,000. Cheetah Copy alsoestimates it will use the machine for four years or about 8,000total hours. Actual use per year was as follows:

Year

Hours Used

1

2,000

2

2,000

3

2,000

4

3,000

---

Required:

1.

Prepare a depreciation schedule for four years using thestraight-line method

CHEETAH COPY
Depreciation Schedule—Straight-Line
End of Year Amounts
Year	Depreciation Expense	Accumulated Depreciation	Book Value
1
2
3
4
Total	$0

2.

Prepare a depreciation schedule for four years using thedouble-declining-balance method. (Hint: The asset will bedepreciated in only two years.) (Do not round your intermediatecalculations.)

CHEETAH COPY
Depreciation Schedule—Double-Declining-Balance
End of Year Amounts
Year	Depreciation Expense	Accumulated Depreciation	Book Value
1
2
3
4
Total	$0

3.

Prepare a depreciation schedule for four years using theactivity-based method. (Roundyour "Depreciation Rate" to 2 decimal places.)

CHEETAH COPY
Depreciation Schedule—Activity-Based
End of Year Amounts
Year	Depreciation Expense	Accumulated Depreciation	Book Value
1
2
3
4
Total	$0