1 Sullivan Ranch Corporation has purchased a new tractor and has provided you with information related to the purchase. The Controller has asked you to calculate the depreciation for the new piece of equipment using different methods: Straight-Line depreciation, Units- of-Production depreciation, and Double-Declining-Balance depreciation. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. 100 points Skipped eBook 6 References Cell Reference: Allows you to refer to data from another cell in the worksheet. In the Excel Simulation below, if =B8 is entered in a blank cell, the formula outputs the result from cell B8, which is 360 in this example. Absolute Reference: Allows you to maintain the original cell reference when a formula is copied to another cell. The cell reference is locked by putting a dollar sign ($) before the column and row references. By default a cell reference is relative, so when you copy a formula to another cell, the values update based on a relative reference. For example, if you copy the formula "=B8+B9 from cell C1 to cell C2, the formula in cell C2 relatively updates to be =B9+B10. Since the copied formula moved down one cell, the formula cell references also move down one cell. Conversely, by adding the absolute cell reference locks to the equation, the formula does not change when copied to any other cell. For example, if =$B$8+$B$9 in cell C1 is copied to cell C2, the formula in cell C2 remains =$B$8+$B$9". You can also use a mixed cell reference by only locking the column or row ($B8 or B$8), which locks that specific column or row while the other reference becomes a relative reference and moves with the formula as it's copied to another cell. For example, if you copy the formula =B$8+B9 from cell C1 to cell C2, the formula in cell C2 updates to be =B$8+B10. Since the copied formula moved down one cell, the formula cell relative references also move down one cell, but the absolute locked reference remains the same. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and / (forward slash to divide). In the Excel Simulation below, if =B10+B11 is entered in a blank cell, the formula adds the values from those cells and outputs the result, which is 570 in this example. If using the other math symbols, the result is an appropriate answer for the function. SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. In the Excel Simulation below, if =SUM(B8,39,810) is entered in a blank cell, the formula outputs the result of adding those three separate cells, which is 980 in this example. Similarly, if =SUM(B8:B10) is entered in a blank cell, the formula outputs the same result of adding those cells even though they are expressed as a range in the formula, so the result is 980 in this example. SLN function: Allows you to calculate the depreciation of an asset using the straight-line depreciation method. The syntax of the SLN function is =SLN(cost,salvage, life) and outputs the depreciation for one period. The cost argument is the initial cost of the asset. The salvage argument is the salvage value at the end of the life of the asset. The life argument is the number of periods over which the asset is being depreciated, also called the useful life. DDB function: Allows you to calculate the depreciation of an asset using the double-declining balance method. The syntax of the DDB function is =DDB(cost,salvage,life, period, [factor] and outputs the depreciation for one period. The function must include the first four arguments and has a fifth optional argument. The cost argument is the initial cost of the asset. The salvage argument is the salvage value at the end of the life of the asset. The life argument is the number of periods over which the asset is being depreciated, also called the useful life. The period argument is the period for which you want to calculate the depreciation and must use the same units as the life argument. The (factor] argument is the rate at which the balance declines. When omitted, factor is assumed to be 2 (for the double-declining balance method). . When omitted, factor is assumed to be 2 (for the double-declining balance method). XI Finance Depreciation Schedules - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In * Calibri 11 A A % Paste BIU- Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 X f Sullivan Ranch Corporation has purchased a new tractor. The following B D E F 1 Sullivan Ranch Corporation has purchased a new tractor. The following information is given: 2 3 Cost: $ 150,000 4 Estimated Residual: $ 10,000 5 Estimated Life in years: 6 Estimated Life in hours: 1200 7 Actual Hours: 8 Year 1 360 9 Year 2 270 10 Year 3 350 11 Year 4 220 12 13 Prepare the following Straight Line depreciation schedule by using the excel SLN FUNCTION (fx) to calculate the Depreciation Expense for Years 1-4 in the Depreciation Expense column. Enter formulas or absolute cell references for the remaining cells. 14 15 16 17 18 SULLIVAN RANCH CORPORATION Depreciation Schedule-Straight Line Method End of year amounts Depreciation Accumulated Expense Depreciation 19 Year Book Value 20 21 1 2 3 22 Sheet1 + D