Total 36 Prepare the following Double-Declining-Balance depreciation schedule by
ID: 2555526 • Letter: T
Question
Total 36 Prepare the following Double-Declining-Balance depreciation schedule by using the Excel DDB FUNCTION (h) to 37 calculate Depreciation Expense for Years 1-4 in the Depreciation Expense column. Enter formulas or absolute cell references for the remaining cells. 38 39 40 41 42 End of year amounts Depreciation Accumulated Depreciation 43 Year Book Value Ex 45 46 47 48 49 2 Total 51 52 X Sulivan Ranch Corporation has puchusel s new trcter. The taliowing e new ratox. The fellaw ing s 150000 % 10,0 Extimated Residual Actual Houn II Year 4Explanation / Answer
DEPRECIATION SCHEDULE-STRAIGHT LINE MTHOD YEAR DEPRECIATION ACCUMULATED BOOK VALUE DEPRECIATION 1 35000 35000 115000 2 35000 70000 80000 3 35000 105000 45000 4 35000 140000 10000 Note: Annual Depreciation = (Cost-salvage)/ Life = (150,000-10000)/4 years = $ 35,000 DEPRECIATION SCHEDULE -UNITS OF PRODUCTION YEAR DEPRECIATION ACCUMULATED BOOK VALUE DEPRECIATION 1 42000 42000 108000 2 31500 73500 76500 3 40833 114333 35667 4 25667 140000 10000 Note: Depreciation per hour =140000/1200 = $116.67 per hour DEPRECIATION SCHEDULE -DOUBLE DECLING METHOD YEAR DEPRECIATION ACCUMULATED BOOK VALUE DEPRECIATION 1 75000 75000 75000 2 37500 112500 37500 3 18750 131250 18750 4 8750 140000 10000 Note: Rate under SLM: 25% Rate under DDM: 25*2 = 50%