4 APPLICATION ASSIGNMENT #4- ACC T305 (Chapter 11) 2 3 students. Please utilize Excel to complete the requirements listed below Make sure your answers are transferred to the appropriate Dank in the Solutions (orange tab) worksheet in this workbook Make sure you are 5 utilizing Excel functions Formatting, and calculation abilities where applicable Your worksheets should be 5 easy to read and labelled properly 2 Problem (Depreciation SL, DOB, SYD. Act) On January 15, 2017 Marco Company, 9 medium sized manufacturer, acquired the following assets 10 Cost Salvage Useful Units of Production Class 11 Value Life Life 12 Asset 131,375,000 $75,000 5 2017 38.000 5 Tot units of 2018 40.000 output 160.000 14 2019 35,000 15 16 Asset 2 $ 830,000 $55.000 7 2017 22.000 7 Total units of 2018 16 000 Output 100,000 2010 18.000 19 20 Asset #3 $ 960,000 $ 10 2017 75.00 10 Total units or 21 2018 35.000 Output 600.000 72.000 23 24 The following depreciation methods we used (traightine (2) double declining balance 25 (3) sum-of-the-years-digitsand (4) units of output 2010 26 27 Instructions: 28 (a) Calculate the annual depreciation for each of the three assets for each of the four depreciation 29 methods described above. Provide the depreciation expense for years 2017, 2018, and 2019 30 To complete this, utilize Excel worksheets and tools to create a table that is easy to read use 31 formulas and cell references where appropriate, and label the annual depreciation for each year 32 Make sure all compenents are included such as depreciable cost, etc. NOTE: Round final solutions to two digits. 34 35 (b) Calculate the annual depreciation for each of the three assets for each of the four depreciation methods, assuming they were all purchased August 15, 2017 Provide the depreciation expense for years 37 2017, 2018, 2019 38 Provide all solutions in the Solutions tab Be sure to use cell references 33 36 (c (1) Which depreciation method would maximize net income for financial statement reporting for the 3-year period ending December 31, 2019 for the (a) situation? 39 40 41 42 43 44 45 46 (C)(2) Which depreciation method would minimize net income for financial statement reporting for the 3-year period ending December 31, 2019 for the (a) situation? 47 48 49 50 51 52 53 54 CHECK FIGURES Asset #1 DDB Asset #1 SYD Asset#2 DOB Asset 2 SYD Asset #3 DDB Asset #3 SYD Part A Y2 Partly Part A, Y2 Part BV Part A Y2 Part B. Yr3 $ 330.000.00 $ 310 555 56 $ 169,38776 S 154869 $ 155,040.00 5 151 222 781 b) Asset 2017 2018 2019 2017 2018 2019 Asset 2017 2012 2019 Straight line 5L 5 Double-deck bance 000 DOE Sum-of-the-Years Digts SYU SYD Units of Output Output 11 (1) Method to me net income (2) Method to meet 21 22 15 30