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o edit it's safer to stay in Protected View. Enable Editing Miller-Nobles (6e/12e) - Using Excel Ch09/Ch10 v2 Project Description: (9/5) SKP-v2 created Steps to Perform: Step Instructions PO 1 Download and open the excel spreadsheet , Miller-Nobles 6e-12e-Using Excel Ch. Ch10 Start.xlsx This spreadsheet includes 2 tabs, you will enter all answers on the second tab, ENTERANSWERS (All answers should be entered in the blue highlighted cells.) 2 The Fraser River Corporation has purchased a new piece of factory equipment on January 1, 2018, and wishes to compare three depreciation methods: straight-line, double-declining- balance, and units of production. The equipment costs $400,000 and has an estimated useful life of four years, or 8,000 machine hours. At the end of four years, the equipment is estimated to have a residual value of $20,000 Use Excel to prepare depreciation schedules for straight-line, double-declining balance, and units-of-production methods. (56 pts) (Always use cell references and formulas where appropriate to receive full credit) Prepare a second depreciation schedule for double-declining balance method using the Excel function DDB. The DDB function cannot be used in the last year of the asset's useful life (12 pts) (Always use cell references and formulas where appropriate to receive full credit) 3 4 At December 31, 2018, Fraser River is trying to determine if it should sell the factory equipment Fraser River will only sell the factory equipment if the company earns a gain of at least $6,000. For each of the depreciation methods, what is the minimum amount that Fraser River will sell the factory equipment for in order to have a gain of $6,000? (3 pts) (Always use cell references and formulas where appropriate to receive full credit) 5 Once completed, save the project to the desktop File name can be anything, but DO NOT include spaces. Return to auto-graded excel activity window, and progress to Step 3 Follow on screen instructions (To review score, navigate to Results in the Mylab and click on Review link) Possible Points 56 B G H M N o 1 Plant Assets, Natural Resources and Intangibles 2 Using Excel to prepare depreciation schedules 3 The Fraser River Corporation has purchased a new piece of factory equipment on January 1, 2018, and wishes to compare three depreciation 4 methods: straight-line, double-declining-balance, and units-of-production The equipment costs $400,000 and has an estimated useful life of four years, or 8,000 machine hours. At the end of four years, the equipment 5 is estimated to have a residual value of $20,000 6 Use the blue shaded areas on the ENTER-ANSWERS tab for inputs. 7. ALWAYS use cell references and formulas where appropriate to receive full credit. Copy/pasting values will NOT earn full points. 8 9 10 Requirements 11 1 Use Excel to prepare depreciation schedules for straight-line, double-declining-balance, and units-of-production methods. 2 Prepare a second depreciation schedule for double-declining-balance method, using the Excel function DDB. The DDB function cannot be used in the last year of the 12 asset's useful life. 3 At December 31, 2018, Fraser River is trying to determine if it should sell the factory equipment. Fraser River will only sell the factory equipment if the company earns a gain of at least $6,000. For each of the depreciation methods, what is the minimum amount that Fraser River will sell the factory equipment for in order to have a gain 13 of $6,000? 14 *For all requirements, enter all amounts as positive values. Do not use a minus sign or parentheses for any values. 15 16 17 Excel Skills 18 1 Create formulas with absolute and relative cell references 19 2 Format the cells as accounting number format. 20 3 Use the Excel function DDB to calculate double declining-balance depreciation. 21 12 G Requirement 1 Use Excel to prepare depreciation schedules for straight-line, double-declining balance, and units-of-production methods. (Always use cell references and formulas where appropriate to receive full credit. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values.) Requirement 2 Prepare a second depreciation schedule for double declining balance method, using the Excel function DDB. The DDB function cannot be used in the last year of the asset's useful life. (Always use cell references and formulas where appropriate to receive full credit. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values.) Requirement 3 At December 31, 2018, Fraser River is trying to determine if it should sell the factory equipment. Fraser River will only sell the factory equipment if the company earns a gain of at least $6,000. For each of the depreciation methods, what is the minimum amount that Fraser River will sell the factory equipment for in order to have a gain of $6,000? (Always use cell references and formulas where appropriate to receive full credit. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values.) . **For calculations in each of the four tables below refer only to the values calculated in the same table or provided in the DATA table. DATA Cost $ 400,000.00 Residual Value $ 20,000.00 Useful Life (Years) 4 Useful Life (Hours) 8,000 Gain End of Year 1 $ 6,000.00 2 Straight Line Year Depreciable Cost Rate Depreciation Expense Accumulated Depreciation Book Value **For calculations in each of the four tables below refer only to the values calculated in the same table or provided in the DATA table. DATA Cost $ 400,000.00 Residual Value S 20,000.00 Useful Life (Years) 4 Useful Life (Hours) 8,000 Gain End of Year 1 S 6,000.00 Straight Line Depreciable Cost Year Rate Depreciation Expense Accumulated Depreciation Book Value 1 2 3 4 The minimum amount to sell the factory equipment in order to have a gain of $6,000 at the end of Year 12 Double Declining Balance using DDB function Depreciation Accumulated Year Expense Depreciation Book Value Depreciation Expense Rate Accumulated Depreciation Book Value End of Year Double Declining Balance Book Value Year Beginning of Year 1 2 3 4 1 2 3 4 The minimum amount to sell the factory equipment in order to have a gain of $6,000 at the end of Year 12 JE L Book Value A B C D E F G 32 H Double Declining Balance Book Value Double Declining Balance using DDB function Year Beginning of Depreciation Rate Accumulated Book Value 33 Expense Depreciation Year Accumulated Depreciation Year End of Year Expense Depreciation 34 1 35 2 1 36 3 2. 37 4 3 4 38 39 The minimum amount to sell the factory equipment in order to have a gain of $6,000 at the 40 end of Year 12 41 42 Units of Production Depreciation Year Machine Hours Depreciation 43 Accumulated Per Unit Book Value Expense Depreciation 44 1 2,400 45 2 1,800 46 3 2,480 47 4 1,320 48 49 The minimum amount to sell the factory equipment in order to have a gain of $6,000 at the 50 end of Year 12 51 52 53 HINTS 54 + 55 Cell Hint: C24:D27 Use absolute cell references to the corresponding cells in the DATA table to calculate depreciable cost and depreciation rate values for periods 56 1-4. (Absolute cell reference uses S, example SA$1) ALL Book Value columns Use absolute cell reference to the corresponding cell in the DATA table and the values obtained in the Accumulated 57 Depreciation column to calculate the book values for periods 1-4. J34:37 Use the function=DDB() to calculate the depreciation expense. Do not enter any value for the FACTOR argument of the DDB function. Note that the Finntinnenhaused in the last of the scot cafu leo 12:21 Instructions ENTERANSWERS Tam