Question

Cheetah Copy purchased a new copy machine. The new machine cost $136,000 including installation. The company estimates the equipment will have a residual value of $34,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows:

Year	Hours Used
1	2,900
2	1,900
3	1,900
4	3,500

1. Prepare a depreciation schedule for four years using the straight-line method.

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

Answer 1