APPLICATION ASSIGNMENT $\backslash$#$4-$ ACCT$305($Chapter $10)$

SHOW ALL CELL FORMULAS AND USE CELL REFRENCES!! NO HARD ENTRY ANSWERS!! SHOW ALL WORK!! CREATE TABLES!!

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.

Problem: $($Depreciation$-$SL$,$ DDB$,$ SYD$,$ Act.$)$ On January $1$st$,2022,$ Marco Company, a medium$-$sized manufacturer, acquired the following assets:

The following depreciation methods will be used: $(1)$ straight$-$line; $(2)$ double$-$declining$-$balance; $(3)$ 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 $2022,2023,$ and $2024.$

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.

Make sure all compenents are included such as depreciable cost, etc.

NOTE: Do not round in calculations but round final solutions to two digits.

$($b$)$ Calculate the annual depreciation for each of the three assets for each of the four depreciation methods, assuming they were all purchased August $1$st$,2022.$ Provide the depreciation expense for years $2022,2023,2024.$

Provide all solutions in the Solutions tab. Be sure to use cell references.

$($c$)(1)$ Which depreciation method would maximize net income for financial statement reporting for the $3-$year period ending December $31,2024$ for Asset $\backslash$#$1$ in the $($a$)$ situation?

$($c$)(2)$ Which depreciation method would minimize net income for financial statement reporting for the $3-$year period ending December $31,2024$ for Asset $\backslash$#$2$ in the $($a$)$ situation?

Solutions to Application Assignment #$4$

Student Name:

$($a$)$

Asset #$1$

Straight Line

Double$-$declining balance

Sum$-$of$-$the$-$Years'$-$ Digits

Units of Activity

$($b$)$

Asset #$1$

Straight Line

Double$-$declining balance

Sum$-$of$-$the$-$Years'$-$ Digits

Units of Activity

$(1)$ Method to maximize net

$(2)$ Method to minimize net

income