Partial-year depreciation

Equipment acquired at a cost of $89,000 has an estimated residual value of $5,000 and an estimated useful life of 10 years. It was placed in service on May 1 of the current fiscal year, which ends on December 31. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

1. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method. Round your answers to the nearest dollar.

   	Depreciation
   Year 1	$ fill in the blank 2
   Year 2	$ fill in the blank 3

2. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method. Do not round the double-declining balance rate. Round your answers to the nearest dollar.

   	Depreciation
   Year 1	$ fill in the blank 4
   Year 2	$ fill in the blank 5

File Home Insert Draw Page Layout Formulas Data Heview View Helo Editing Aral v 10 B I Av. Mere General $ - Conditional Formativ sules Formal. As Table forma E E F G H 1 .] L M D3 fx A B D C 1 Partial-year depreciation 2 3 DATA 4 Cost $89.000 S5.000 5 Estimated residual value 6 Estimated useful to (in years) 10 7 Placed into service on May 1 8 End on the fiscal year Decernber 31 9 Using formulas and cell references, perform the required analysis, and input your answers into the Amounts column. Transfer the numeric results for the green entry cells (C13 C16) into the appropriate fields in CNOW2 for grading. 10 11 12 Amounts Formulas 13 a. Depreciation (Straighil-line method), Year 1 a( 14 Depreciation (Straight-line method). Year 2 S8.400 Your answer should be a formula 15 b. Depreciation (DDR methad) Year 1 16 Depreciation (DDB method) Year 2 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 29 40 41 42 43 44 45 Data + Calculation Mode: Automat Workbook Statistics