APPLICATION ASSIGNMENT #4- ACCT305 (Chapter 10) Students - Please utilize Excel to complete the requirements listed below. Make sure your answers are transferred to the appropriate blank in the Solutions (orange tab) worksheet in this workbook. Make sure you are utilizing Excel functions, formatting, and calculation abilities where applicable. Your worksheets should be easy to read and labelled properly. Problem: (DepreciationSL, DDB, SYD, Act.) On January 1st, 2020, Marco Company, a medium-sized manufacturer, acquired the following assets: Cost Salvage Value Useful Life Units of Production Class Life Asset #1 $ 1,500,000 $ 125,000 5 2020 50,000 5 * Total units of 2021 40,000 output = 150,000 2022 35,000 Asset #2 $ 925,000 $ 80,000 7 2020 24,000 7 * Total units of 2021 18,000 output = 75,000 2022 14,000 Asset #3 $ 1,050,000 $ - 10 2020 105,000 10 *Total units of 2021 85,000 output = 400,000 2022 76,000 The following depreciation methods will be used: (1) straight-line; (2) double-declining-balance; (3) sum-of-the-years-digits; and (4) units-of-activity. Instructions: (a) Calculate the annual depreciation for each of the three assets for each of the four depreciation methods described above. Provide the depreciation expense for years 2020, 2021, and 2022. To complete this, utilize Excel worksheets and tools to create a table that is easy to read, use formulas and cell references where appropriate, and label the annual depreciation for each year. Make sure all components are included such as depreciable cost, etc. NOTE: Do not round units of activity in calculations but round final solutions to two digits. (b) Calculate the annual depreciation for each of the three assets for each of the four depreciation methods, assuming they were all purchased August 1st, 2020. Provide the depreciation expense for years 2020, 2021, 2022. Provide all solutions in the Solutions tab. Be sure to use cell references. (c )(1) Which depreciation method would maximize net income for financial statement reporting for the 3-year period ending December 31, 2022 for Asset #1 in the (a) situation? (c)(2) Which depreciation method would minimize net income for financial statement reporting for the 3-year period ending December 31, 2022 for the (a) situation? CHECK FIGURES Asset #1 DDB Part A, Yr 2 $ 360,000.00 Asset #1 SYD Part B, Yr3 $ 328,472.22 Asset#2 DDB Part A, Yr 2 $ 188,775.51 Asset #2 SYD Part B, Yr3 $ 168,497.02 Asset #3 DDB Part A, Yr 2 $ 168,000.00 Asset #3 SYD Part B, Yr3 $ 163,863.64

Solutions to Application Assignment #4 Student Name: (a) Asset #1 2020 2021 2022 Asset #2 2020 2021 2022 Asset #3 2020 2021 2022 Straight Line SL SL Double-declining balance DDB DDB Sum-of-the-Years'- Digits SYD SYD Units of Activity U-Act U-Act (b) Asset #1 2020 2021 2022 Asset #2 2020 2021 2022 Asset #3 2020 2021 2022 Straight Line SL SL Double-declining balance DDB DDB Sum-of-the-Years'- Digits SYD SYD Units of Activity U-Act U-Act c) (1) Method to maximize net income (2) Method to minimize net income

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