1 Chapter 9 2 Using Excel 3 p942 using Excel to prepare depreciation schedules The Fraser River Corporation 5 balance, and units-of-production 6 has purchased a new piece of factory equipment on January 1,2018, and wishes to compare three depreciation methods: straight-line, double-declining- 7 The equipment costs $400,000 and has an estimated useful life of four years, or 8,000 machine hours. At the end of four years, the equipment is estimated to have a residual value of $20,000. 9 Requirements 10 1. Use Excel to prepare depreciation schedules for straight-line, double-declining-balance, and units-of-production methods 2. Prepare a second depreciation schedule for double-declining-balance method, using the Excel function DDB. The DDB function cannot be used in the last year of the asset's useful life. 3. At December 31, 2018, Fraser River is trying to determine if it should sell the factory equipment. Fraser River will only sell the factory equipment if the company earns a gain of 12 13 14 Excel Skills at least $6,000. For each of the depreciation methods, what is the minimum amount that Fraser River will sell the factory equipment for in order to have a gain of $6,000? 16 17 18 1.Create fornulas with absolute and relative cell references. 2. Format the cells as accounting number format. 3. Use the Excel function DDB to calculate double-declining-balance depreciation