H APPLICATION ASSIGNMENT #4- ACCT305 (Chapter 11) 1 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 (Depreciation-SL, DDB, SYD, Act.) On January 1st, 2017 Marco Company, a medium-sized manufacturer, acquired the following assets. 0 Useful Life Units of Production Salvage Cost Value $ 1,325,000 $ 75,000 MACRS Class Life 1 2 Asset #1 5 5 2017 2018 2019 42,000 35,000 31,000 Total units of output = 160,000 5 5 Asset #2 $ 625,000 $ 55,000 7 7 2017 2018 2019 25,000 18,000 16,000 * Total units of output = 100,000 3 3 Asset #3 $ 879,000 $ 10 10 2017 2018 2019 82,000 75,000 60,000 *Total units of output - 600,000 1 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 2017, 2018, and 2019 To complete this, utilize Excel worksheets and tools to create a table that is easy to read, use B D E G H 24 The following depreciation methods will be used: (1) straight-line; (2) double-declining-balance, 25 (3) sum-of-the-years-digits, and (4) units-of-output 26 27 Instructions: 28 (a) Calculate the annual depreciation for each of the three assets for each of the four depreciation 29 methods described above. Provide the depreciation expense for years 2017, 2018, and 2019. To complete this, utilize Excel worksheets and tools to create a table that is easy to read, use formulas where appropriate, and label the annual depreciation for each year Make sure all compenents are included such as depreciable cost, etc. 33 NOTE: Round final solutions to two digits. 30 31 32 (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, 2017. Provide the depreciation expense for years 2017, 2018, 2019 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, 2019 for the (a) situation? 34 35 36 37 BB 39 40 11 12 13 14 15 16 17 18 19 50 51 (c)(2) Which depreciation method would minimize net income for financial statement reporting for the 3-year period ending December 31, 2019 for the (a) situation? CHECK FIGURES Asset #1 DDB Asset #1 SYD Assetil2 DDB Asset 2 SYD Asset 83 DDB Asset 3 SYD Part A, Yr 2 Part B, Yr3 Part A, Yr 2 Part B. Yr3 Part A. Yr 2 Part B. Yr3 $ $ $ S $ $ 318,000.00 298,611.11 127,55102 113,660.71 140,640.00 13717727 53
