A B C D E F 1 Problem 8-2A: 2 3 General Instructions: 4 All calculations should be rounded to whole numbers except the depreciation rate per unit and the percent depreciation 5 rate for the double-declining balance annual rate. The depreciation rate per unit should be rounded to two decimal places. 6 The double-declinging balance depreciation annual rate should be rounded to whole percentages. 7 Calculations should all be embeded in the individual cells. 8 All numbers should be linked 9 All numbers and calculations should be properly formatted. 10 In this assignment there is no need for report headings. 11 12 ASSSUMPTIONS: 13 Machine cost $ 257,500 14 Estimated useful life in years 4 years 15 Estimated useful life in units of production 475,000 units produced 16 Estimate salvage value $ 20,000 17 Note: For the units of production method the total number of units produced by the end of year 4 18 exceeds the original estimate. This difference was not predicted. 19 20 21 Part 1: Calculate the depreciation rate for the straight-line and units of production methods 22 Units of 23 Straightline Production 24 25 26 27 28 29 30 Part 2: Calculate the depreciation rate per year for the double-declining balance method + 32 33 34 35 36 E F G H 50% 37 38 39 Part 3: Complete the following table 40 41 Year 42 43 44 45 46 47 48 49 Part 4: Calculate annual straight-line depreciation 50 Depreciation Expense by Year Double- Untis of Dedining Straight-line Production Balance 1 $ 59,375 $ 110,000 $ 128,750 2 $ 59,3755 62,300 $ 64,375 3 $ 59,375 $ 60,900 $ 32.188 4 $ 59,375 $ 4,300 $ 12,188 Totals Year Net Book Value 51 52 53 54 55 Straight-line Depreciation Calculations Beginning Current Year Accumulated Balance Depreciation Depreciation 1 2 3 4 Totals 56 57 58 Part 4: Calculate units of production Depreciation 59 Units Produced Straight-line Depreciation Calculations Depreciation Beginning Current Year Accumulated Rate per Unit Balance Depreciation Depreciation Year Net Book Value 60 61 62 63 64 65 1 2 3 Totals 67 Part 4: Calculate double-decling balance depreciation 68 Straight-line Depreciation Calculations Depreciation Beginning Current Year Accumulated Rate per Year Balance Depreciation Depreciation Year Net Book Value 69 70 71 72 73 74 75 76 1 2 3 4 Totals