5 4 Using Excel to prepare depreciation schedules Technite Ltd has purchased a new piece of factory equipment on January 1, 2024, and wishes to compare three depreciation methods straight-line, double-declining- 6 balance, and units of production The equipment costs $400,000 and has an estimated useful life of four years, or 8,000 machine botes. At the end of four years, the equipment is estimated to have a residual value of $20,000 9. 10 Requirements 11 1. Use Excel to prepare depreciation schedules for straight-line, double-declining-balance, and units-of-production methods 12 2. Prepare a second depreciation schedule for double declining balance method, using the Excel fianction DDB. The DDB function cannot be used in the last year of the asset's useful life 3. At December 31, 2024. Technilite Ltd is trying to determine if it should sell the factory equipment Technilite Ltd will only sell the factory equipment if the company ears again of at least 56,000 For each of the depreciation methods, what is the minimum amount that Technalite Ltd. will sell the factory equipment for in order to have a grin of 56,000? 14 15 Excel Skills 16 1. Create formulas with absolute and relative cell references. 17 2. Format the cells as accounting sumber format 3. Use the Excel function DDB to cakulte double-declining-balance depreciation Activate Windows 13 10 3 years 5 yeas 3 4 ABC Company was preparing the annual financial statements and, as part of its year-end procedures, prepared the following 5 Accumulated Recoverable Residual Cost Depreciation Asset 6 Depreciation Amount Value Method Remaining Life 7 Furniture $25,000 $20,000 $10,000 $500 Straight Line 8 Computer $2,000 $1,000 $500 Double Declining 9 Land $105,000 $90,000 NA NA Unlimited 10 Machine $90,000 $25,000 $35,000 $5,000 Straight Line 11 12 NA - Not applicable 13 14 Required 15 16 1. Record the entry for any impairment loss assuming that ABC Company recorded no impairment losses in previous years. 17 18 Do Not Calculate depreciation and pass the entries for depreciation. 3 years