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Sullivan Ranch Corporation has purchased a new tractor and has provided you with information about the purchase. The controller has asked you to calculate the

Sullivan Ranch Corporation has purchased a new tractor and has provided you with information about the purchase. The controller has asked you to calculate the depreciation for the new piece of equipment using three different methods: straight-line, units-of-production, and double-declining-balance.
Cost: $150,000
Estimated residual value: $10,000
Estimated life in years: 4
Estimated life in hours: 1,200
Actual hours used:
Year 1360
Year 2270
Year 3350
Year 4220
Here are some tips for using Excel:
Cell References: Never type a number from an Excel sheet elsewhere in the sheet. Instead, type an equals sign and then click the cell that includes the number. For example, =B5 would return the number from B5.
Basic Math Functions: Use symbols (+-*/) to add, subtract, multiply, and divide in Excel. Do not do any calculations by hand.
SUM Function: This function sums multiple cells. You can enter individual cell references or ranges. For example, =SUM(C4,C5,C6) and =SUM(C4:C6) will both return the value of C4+C5+C6.
SLN Function: This function calculates depreciation expense using the straight-line method. The syntax of the SLN function is =SLN(cost,salvage,life). Enter the asset's cost, salvage value, and useful life.
DDB Function: This function calculates depreciation expense using the double-declining balance method. The syntax of the DDB function is =DDB(cost,salvage,life,period). Enter the asset's cost, salvage value, useful life, and the period number you are calculating depreciation for.
Required:
1. Prepare the following depreciation schedule using the SLN function.
You must use absolute cell references ($) if a cell reference is repeated multiple times across different cells' formulas.
SULLIVAN RANCH CORPORATION
Depreciation Schedule: Straight-Line Method
End-of-Year Amounts
Year Depreciation Expense Accumulated Depreciation Book Value
1 $35,000 $35,000 $115,000
2 $35,000 $70,000 $80,000
3 $35,000 $105,000 $45,000
4 $35,000 $140,000 $10,000
Total $140,000
2. Prepare the following depreciation schedule using the units-of-production method. Use the formula from the Chapter 8 notes.
You must use absolute cell references ($) if a cell reference is repeated multiple times across different cells' formulas.
SULLIVAN RANCH CORPORATION
Depreciation Schedule: Units-of-Production Method
End-of-Year Amounts
Year Depreciation Expense Accumulated Depreciation Book Value
1 $42,000 $42,000 $108,000
2 $31,500 $73,500 $76,500
3 $40,833 $114,334 $35,666
4 $25,667 $140,000 $10,000
Total $140,000
3. Prepare the following depreciation schedule using the Excel DDB function.
You must use absolute cell references ($) if a cell reference is repeated multiple times across different cells' formulas.
SULLIVAN RANCH CORPORATION
Depreciation Schedule: Double-Declining-Balance Method
End-of-Year Amounts
Year Depreciation Expense Accumulated Depreciation Book Value
1 $75,000 $75,000 $75,000
2 $37,500 $112,500 $37,500
3 $18,750 $131,250 $18,750
4 $9,375 $140,625 $9,375
Total $140,625

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