You manage the equipment for your company, Roadrunner Drilling Works. Since Roadrunner uses accrual based accounting, your budget includes depreciation expense for the equipment you manage. You are planning to purchase new drilling equipment at the beginning of next year, January 2, 2024 and you want to determine which depreciation method will be better to use, straightline or double declining balance. The tab "Calculations" is set up with the headings for you to calculate both methods. Use Excel formulas for your calculations so that if the purchase price is more or less than the estimate you are using in your calculations, you can easily enter the actual purchase price and Excel will make all of the changes. Please feel free to add colors, fonts, and any other enhancements to the Calculations sheet. I have just provided basics but welcome enhancement The cost of the drilling equipment is $160,000 The estimated useful life is 4 years The residual or salvage value is $10,000 You will have either a link or a formula in each of the cells that are blue Roadrunner Drilling Works Depreciation Estimates for Drilling Equipment purchase January 2, 2024 \begin{tabular}{|l|r|} \hline Cost & $160,000 \\ \hline Residual Value & $10,000 \\ \hline Useful Life Years & 4 \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{8}{|c|}{ Straightline Depreciation } \\ \hline & Year & Cost & \begin{tabular}{c} Residual \\ Value \end{tabular} & \begin{tabular}{c} Depreciable \\ Cost \end{tabular} & \begin{tabular}{c} Depreciation \\ Expense \end{tabular} & \begin{tabular}{l} Accumulated \\ Depreciation \end{tabular} & Book Value \\ \hline & 2024 & & & & & & \\ \hline & 2025 & & & & & & \\ \hline & 2026 & & & & & & \\ \hline & 2027 & & & & & & \\ \hline & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Double Declining Balance (similar to accelerated depreciation for tax purposes) } \\ \hline Year & Cost & DDB \% & \begin{tabular}{c} Book Value \\ for \\ Depreciation \\ Calculation \end{tabular} & \begin{tabular}{c} Depreciation \\ Expense \end{tabular} & \begin{tabular}{l} Accumulated \\ Depreciation \end{tabular} & Book Value \\ \hline 2024 & & & & & & \\ \hline 2025 & & & & & & \\ \hline 2026 & & & & & & \\ \hline 2027 & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} DDB formula is 1 over the SL years =%, then multiply by 2 BV cannot go below residual value