1. Asset Acquisition, Depreciation, and Disposal Excel Case Problem

Applejack Company is the world's largest wholesale distributor of swimming pool supplies and equipment. Assume Applejack purchased for cash new loading equipment for the warehouse on January 1, 2020, at an invoice price of $80,000. It also paid $1,500 for freight on the equipment, $1,000 to prepare the equipment for use in the warehouse, and $750 for insurance to cover the equipment during operation in 2020. The equipment was estimated to have a residual value of $3,300 and be used over three years or 24,000 hours.

Required: Submit your answers below in an Excel Spreadsheet. Formulas should be included. Please create a new tab for each numbered solution below.

1. Record the equipment purchase, freight, preparation costs, and insurance on January 1, 2020.

2. Create a depreciation schedule assuming Applejack Company uses the straight-line method.

3. Create a depreciation schedule assuming Applejack Company uses the double- declining-balance methodround answers to the nearest dollar.

4. On December 31, 2021, the equipment was sold for $22,500. Record the sale of the equipment, assuming the company used the straight-line method.