Question
EXCEL FORMULAS NEEDED! I cannot figure out the correct formula as DB, DDB, SNL for the correct answers to match the cells on the photos
EXCEL FORMULAS NEEDED! I cannot figure out the correct formula as DB, DDB, SNL for the correct answers to match the cells on the photos that have been given :(
Sullivan ranch corporation has purchased a new tractor and has provided the information related to the purchase. the controller has asked you to calculate the depreciation for the new piece of equipment using different methods. straight-line depreciation, units if production depreciation, and double-declining balance depreciation. use the information included in the excel simulation and EXCEL FUNCTION FORMULAS described below to complete the task.
Sullivan ranch corporation has purchased a new tractor and has provided the information related to the purchase. the controller has asked you to calculate the depreciation for the new piece of equipment using different methods. straight-line depreciation, units if
I cannot figure out the correct formulas to get the proper numbers...help! The last response given was all incorrect as the formula did not match the correct cells:(
Requirement 1: Straight Line Depreciation
A | B | C=A-B | sum of each year's depreciation expense | |
Year | Book Value | Depreciation expense | Ending Book Value | Accumulated Depreciation |
1 | $ 150,000.00 | $ 35,000.00 | $ 115,000.00 | $ 35,000.00 |
2 | $ 115,000.00 | $ 35,000.00 | $ 80,000.00 | $ 70,000.00 |
3 | $ 80,000.00 | $ 35,000.00 | $ 45,000.00 | $ 105,000.00 |
4 | $ 45,000.00 | $ 35,000.00 | $ 10,000.00 | $ 140,000.00 |
Working:
(Straight Line Method) | tractor A | |
A | Cost | $ 150,000.00 |
B | Residual Value | $ 10,000.00 |
C=A - B | Depreciable base | $ 140,000.00 |
D | Life [in years] | 4 |
E=C/D | Annual SLM depreciation | $ 35,000.00 |
Requirement 2:
A | B | C =B * Depreciation expense per hour | D=A-C | sum of each year's depreciation expense | |
Year | Book Value | Usage | Depreciation expense | Ending Book Value | Accumulated Depreciation |
1 | $ 150,000.00 | 360 | $ 42,000.00 | $ 108,000.00 | $ 42,000.00 |
2 | $ 108,000.00 | 270 | $ 31,500.00 | $ 76,500.00 | $ 73,500.00 |
3 | $ 76,500.00 | 350 | $ 40,833.33 | $ 35,666.67 | $ 114,333.33 |
4 | $ 35,666.67 | 220 | $ 25,666.67 | $ 10,000.00 | $ 140,000.00 |
Working:
Bus 3 (Unit of Activity) | ||
A | Cost | $ 150,000.00 |
B | Residual Value | $ 10,000.00 |
C=A - B | Depreciable base | $ 140,000.00 |
D | Usage IN Hours | 1,200 |
E = C/D | Depreciation per Hour | $ 116.67 |
Requirement 3:
Year | Beginning Book Value | Depreciation rate | Depreciation expense | Ending Book Value | Accumulated Depreciation |
1 | $ 150,000.00 | 50.00% | $ 75,000.00 | $ 75,000.00 | $ 75,000.00 |
2 | $ 75,000.00 | 50.00% | $ 37,500.00 | $ 37,500.00 | $ 112,500.00 |
3 | $ 37,500.00 | 50.00% | $ 18,750.00 | $ 18,750.00 | $ 131,250.00 |
4 | $ 18,750.00 | Beginning book value - Residual value | $ 8,750.00 | $ 10,000.00 | $ 140,000.00 |
Working:
Bus 2 (Double declining method) | Tractor A | |
A | Cost | $ 150,000.00 |
B | Residual Value | $ 10,000.00 |
C=A - B | Depreciable base | $ 140,000.00 |
D | Life [in years] | 4 |
E=C/D | Annual SLM depreciation | $ 35,000.00 |
F=E/C | SLM Rate | 25.000% |
G=F x 2 | DDB Rate | 50.000% |
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