Question

Asset Building #1    Building #2 Equipment

Date acquired	1/1/13	1/1/14	1/1/13
Cost	$55,000	$20,000	$7,500
Salvage Value	$4000	$1000	$500
Estimated useful Life	15 yrs	5 yrs	4 yrs

This assignment has no beginning student file. You are to create Rosey’s fixed

asset depreciation worksheets from a blank worksheet using the straight-line depreciation method and based on the information in the preceding table. No summary sheet is required. Individual assets must show depreciation over their entire useful life. Follow the text examples for formatting. Label each worksheet Building #1 SL, Building #2 SL, and Equipment SL. In the same workbook, create Rosey’s fixed asset depreciation worksheets using the double declining balance method and based on the same table. No summary sheet is required. Individual assets must show depreciation over their entire useful life. Follow the text examples for formatting. Label each worksheet Building #1 DDB, Building #2 DDB, and Equipment DDB. In the same workbook, create Rosey’s fixed asset depreciation worksheets using the sum-of-the-year’s-digits method and based on the same table. No summary sheet is required. Individual assets must show depreciation over theirentire useful life. Follow the text examples for formatting. Label each worksheet Building #1 SYD, Building #2 SYD, and Equipment SYD. In the same workbook, you should now create a chart of each asset’s depre- ciation that compares the straight-line, double declining balance, and sum-of- the-year’s-digits methods of calculating depreciation. Label each worksheet Building #1 Chart, Building #2 Chart, and Equipment Chart. Choose any line chart and chart layout that you like.

Show Your Work (Formulas in excel)

Answer 1

	Straight-line depreciation method
year	Building # 1	Building # 2	Equipment
1	$   3,400.00	$ 3,800.00	$ 1,750.00
2	$   3,400.00	$ 3,800.00	$ 1,750.00
3	$   3,400.00	$ 3,800.00	$ 1,750.00
4	$   3,400.00	$ 3,800.00	$ 1,750.00
5	$   3,400.00	$ 3,800.00
6	$   3,400.00
7	$   3,400.00
8	$   3,400.00
9	$   3,400.00
10	$   3,400.00
11	$   3,400.00
12	$   3,400.00
13	$   3,400.00
14	$   3,400.00
15	$   3,400.00
	Double Declining balance method
year	Building # 1	Building # 2	Equipment
1	$   7,333.33	$ 8,000.00	$ 3,750.00
2	$   6,355.56	$ 4,800.00	$ 1,875.00
3	$   5,508.15	$ 2,880.00	$     937.50
4	$   4,773.73	$ 1,728.00	$     437.50
5	$   4,137.23	$ 1,036.80
6	$   3,585.60
7	$   3,107.52
8	$   2,693.18
9	$   2,334.09
10	$   2,022.88
11	$   1,753.16
12	$   1,519.41
13	$   1,316.82
14	$   1,141.24
15	$      989.08
	Sum-of-the-year’s-digits method
year	Building # 1	Building # 2	Equipment
1	$   6,375.00	$ 6,333.33	$ 2,800.00
2	$   5,950.00	$ 5,066.67	$ 2,100.00
3	$   5,525.00	$ 3,800.00	$ 1,400.00
4	$   5,100.00	$ 2,533.33	$     700.00
5	$   4,675.00	$ 1,266.67
6	$   4,250.00
7	$   3,825.00
8	$   3,400.00
9	$   2,975.00
10	$   2,550.00
11	$   2,125.00
12	$   1,700.00
13	$   1,275.00
14	$      850.00
15	$      425.00