Dr. Matt Brown purchased a new X-ray machine for his dental practice. The machine cost \($275\),000, and has a \($10\),000 salvage value after 7 years.

As shown in the text, spreadsheet software packages, like Microsoft Excel, include built in functions to calculate depreciation. Use these routines to calculate depreciation for Dr. Brown's x-ray machine for the third year of use. Try this problem with the straight-line (SLN) and double-declining balance (DDB) techniques.

The functions are usually accessed via a toolbar pick list or from the Formulas/Function operation. Once you know the correct way to structure a function, a quick shortcut is to simply key in the formula (e.g., SLN(100,10,4) is the straight-line formula for a \($100\) asset having a \($10\) salvage value and 4 year life).

You should print out two copies of your answer; one with the "values" and the other’ showing the "formulas."

Oftentimes, you will want to view all the formulas used in a worksheet. To toggle between showing formulas and values, simply press "CTRL + °" (grave accent).