4 1 APPLICATION ASSIGNMENT #4- ACC T305 (Chapter 11) 2 3. Students Please utilize Excel to complete the requirements listed below Make sure your answers are transferred to the appropriate blank in the Solutions (orange tab) worksheet in this workbook. Make sure you are utilizing Excel functions, formatting and calculation abilities where applicable. Your worksheets should be easy to read and labelled properly 8 Problem (Depreciation-SL, DDB, SYD, Act) On January 1st, 2017 Marco Company, a medium-sized manufacturer, acquired the following assets: 5 6 7 9 10 Cost Salvage Useful Life Units of Production Class Ede 11 Value 12 Asset #1 $ 1,375,000 $ 75,000 5 2017 38,000 5 Total units of 13 2018 40,000 output = 160 000 14 2019 35,000 15 16 Asset #2 $ 830,000 $ 55,000 7 2017 22.000 7 Total units of 17 2018 16,000 output = 100,000 18 2019 18,000 19 20 Asset #3 $ 969,000 $ 10 2017 75,000 10 Total units of 21 2018 85,000 output = 600,000 22 2019 72,000 23 24 The following depreciation methods will be used (1) straight-line; (2) double declining-balance 25 (3) sum-of-the-years' digits, and (4) units-of-output Instructions (a) Calculate the annual depreciation for each of the three assets for each of the four depreciation methods described above. Provide the depreciation expense for years 2017, 2018, and 2019 To complete this, utilize Excel worksheets and tools to create a table that is easy to read, use formulas and cell references where appropriate, and label the annual depreciation for each year 2 Make sure all compenents are included such as depreciable cost, etc. 3 NOTE: Round final solutions to two digits. 4 5 (b) Calculate the annual depreciation for each of the three assets for each of the four depreciation 36 methods, assuming they were all purchased August 1st, 2017 Provide the depreciation expense for years 87 2017 2018 2019 Provide all solutions in the Solutions tab. Be sure to use cell references. X(1) Which depreciation method would maximize net income for financial statement reporting for the 3-year period ending December 31, 2019 for the (a) situation? (c)(2) Which depreciation method would minimize net income for financial statement reporting for the 3-year period ending December 31, 2019 for the (a) situation? he last 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 CHECK FIGURES Asset #1 DDB Asset #1 SYD Asset2 DDB Asset #2 SYD Asset #3 DDB Asset #3 SYD Part A Y 2 Part B. Yr3 Part A Y 2 Part B, Y13 Part A Y2 Part B. Yr3 $ 330,000.00 $ 310,555,56 $ 169,387,76 S 154 538,69 $ 155,040.00 $ 151,22273 Duta View Help X Cut Arial - 11-AA O-A-EE lot M TW- Accents comme toi Accent Currency $ -% 9 ne te to Canon Format Comma Forg Alena in CE H M N O Solutions to Application Assignment 14 Student Name: (a) Asset es 2017 2018 2019 Asset 2 2017 2018 2019 Asset 2017 2018 2010 Straight Line SL SL Double declining balance DDB DOB Surn-of-the-Years. Digits SYD SYD Units of Output U O UO 2018 2010 Asset 2 2017 2017 2018 2019 Assets 2017 2010 2019 () Asset1 St SL Straight Line DDB DON Double-declining balance SYD SYD Surn-of-the-Years Digits U-Output U-Out 4 Units of Output 60 (1) Method to maximize net income (2) Method to minimize net income hone Solution Instructions Solutions Asset #1 Asset#2 Asset#3 + 4 1 APPLICATION ASSIGNMENT #4- ACC T305 (Chapter 11) 2 3. Students Please utilize Excel to complete the requirements listed below Make sure your answers are transferred to the appropriate blank in the Solutions (orange tab) worksheet in this workbook. Make sure you are utilizing Excel functions, formatting and calculation abilities where applicable. Your worksheets should be easy to read and labelled properly 8 Problem (Depreciation-SL, DDB, SYD, Act) On January 1st, 2017 Marco Company, a medium-sized manufacturer, acquired the following assets: 5 6 7 9 10 Cost Salvage Useful Life Units of Production Class Ede 11 Value 12 Asset #1 $ 1,375,000 $ 75,000 5 2017 38,000 5 Total units of 13 2018 40,000 output = 160 000 14 2019 35,000 15 16 Asset #2 $ 830,000 $ 55,000 7 2017 22.000 7 Total units of 17 2018 16,000 output = 100,000 18 2019 18,000 19 20 Asset #3 $ 969,000 $ 10 2017 75,000 10 Total units of 21 2018 85,000 output = 600,000 22 2019 72,000 23 24 The following depreciation methods will be used (1) straight-line; (2) double declining-balance 25 (3) sum-of-the-years' digits, and (4) units-of-output Instructions (a) Calculate the annual depreciation for each of the three assets for each of the four depreciation methods described above. Provide the depreciation expense for years 2017, 2018, and 2019 To complete this, utilize Excel worksheets and tools to create a table that is easy to read, use formulas and cell references where appropriate, and label the annual depreciation for each year 2 Make sure all compenents are included such as depreciable cost, etc. 3 NOTE: Round final solutions to two digits. 4 5 (b) Calculate the annual depreciation for each of the three assets for each of the four depreciation 36 methods, assuming they were all purchased August 1st, 2017 Provide the depreciation expense for years 87 2017 2018 2019 Provide all solutions in the Solutions tab. Be sure to use cell references. X(1) Which depreciation method would maximize net income for financial statement reporting for the 3-year period ending December 31, 2019 for the (a) situation? (c)(2) Which depreciation method would minimize net income for financial statement reporting for the 3-year period ending December 31, 2019 for the (a) situation? he last 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 CHECK FIGURES Asset #1 DDB Asset #1 SYD Asset2 DDB Asset #2 SYD Asset #3 DDB Asset #3 SYD Part A Y 2 Part B. Yr3 Part A Y 2 Part B, Y13 Part A Y2 Part B. Yr3 $ 330,000.00 $ 310,555,56 $ 169,387,76 S 154 538,69 $ 155,040.00 $ 151,22273 Duta View Help X Cut Arial - 11-AA O-A-EE lot M TW- Accents comme toi Accent Currency $ -% 9 ne te to Canon Format Comma Forg Alena in CE H M N O Solutions to Application Assignment 14 Student Name: (a) Asset es 2017 2018 2019 Asset 2 2017 2018 2019 Asset 2017 2018 2010 Straight Line SL SL Double declining balance DDB DOB Surn-of-the-Years. Digits SYD SYD Units of Output U O UO 2018 2010 Asset 2 2017 2017 2018 2019 Assets 2017 2010 2019 () Asset1 St SL Straight Line DDB DON Double-declining balance SYD SYD Surn-of-the-Years Digits U-Output U-Out 4 Units of Output 60 (1) Method to maximize net income (2) Method to minimize net income hone Solution Instructions Solutions Asset #1 Asset#2 Asset#3 +