Todd Service Company, on January 1, 20xx, purchased a machine that makes a particular part for dining room tables. The following information applies to the machine purchased:

Purchase price - $80,000

Delivery cost - $ 2,500

Installation Cost $ 850

Estimated life - 5 years

Estimated parts produced 160,000

Salvage value $ 3,350

The copies produced as follows:

Year 1 35,000 parts

Year 2 36,000 parts

Year 3 40,000 parts

Year 4 30,000 parts Year 5 19,000 parts

Using Excel, determine the amount of depreciation expense and the net book value for each of the five years (8 years for MACRS) using each of the following methods:

Straight-line

Double-declining balance

Units of production

MACRS, assuming the machine is classified as five-year property

After you completed the worksheet then copy it and assume the machine cost was $90,000 instead of $80,000 (all other information remains the same) and calculate depreciation expense and the net book value for each of the five years (8 years for MACRS) using each of the following methods: Straight-line Double-declining balance (Be sure to double check the calculation for this type of depreciation.) Units of production MACRS, assuming the machine is classified as five-year property If you link the cells then this change of the cost of the machine will be easy to calculate.

$80,000 $2,500 $850 Estimated units produce Estimated life 160,000 5 years Purchase price - Delivery cost Installation charge - Total cost Salvage valve Depreciable base The machine produced as follows: $3,350 Year 1 Year 2 Year 3 Year 4 Year 5 35,000 units 36,000 units 40,000 units 30,000 units 19,000 units Straight Line Net Book Valve Depreciation Expense Year 1 Year 2 Year 3 Year 4 Year 5 Double Declining Balance Net Book Valve Depreciation Expense DDB Rate Year 1 Year 2 Year 3 Year 4 Year 5 Units of Production Depreciation Expense Net Book Value Units of production rate Year 1 Year 2 Year 3 Year 4 Year 5 MACRS Depreciation Expense Net Book Value MACRS Rate Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 0.1429 0.2449 0.1749 0.1249 0.0893 0.0892 0.0893 0.0446