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Cost Salvage Value Useful Life Units of Production Class Life Asset #1 $ 1,425,000 $ 125,000 5 2016 40,000 5 * Total units of 2017

Cost Salvage Value Useful Life Units of Production Class Life
Asset #1 $ 1,425,000 $ 125,000 5 2016 40,000 5 * Total units of
2017 35,000 output = 160,000
2018 38,000
Asset #2 $ 890,000 $ 75,000 7 2016 25,000 7 * Total units of
2017 22,000 output = 100,000
2018 19,000
Asset #3 $ 975,000 $ - 10 2016 85,000 10 *Total units of
2017 80,000 output = 600,000
2018 78,000
The following depreciation methods will be used: (1) straight-line; (2) double-declining-balance;
(3) sum-of-the-years-digits; and (4) units-of-output.
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 2016, 2017, and 2018.
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 compenents are included such as depreciable cost, etc.

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