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Hwan wants to compare straight-line depreciation amounts with declining balance depreciation amounts to determine which method is more favorable for his company's balance sheet. In
Hwan wants to compare straight-line depreciation amounts with declining balance depreciation amounts to determine which method is more favorable for his company's balance sheet. In the range D6:D8, he estimates that the hardware for the new product will have $478,000 in tangible assets at startup, and that the useful life of these assets is six years with a salvage value of $75,650. Start by calculating the straight-line depreciation amounts as follows: a. In cell C12, enter a formula using the SLN function to calculate the straight-line depreciation for the product hardware during the first year. b. Use absolute references for the cost, salvage, and life arguments in the SLN formula. c. Fill the range D12:H12 with the formula in cell C12 to calculate the annual and cumulative straight-line depreciation in Years 26
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