Chapter 9 Using Excel P9-42 Using Excel to prepare depreciation schedules The Fraser River Corporation has purchased a new piece of factory equipment on January 1, 2018, and wishes to comparethree depreciation methods: straight-line, double-declining-balance, and units-of productiorn The equipment costs $400,000 and has an estimated useful life of four years, or 8,000 machine hours. At the end of four years, the equipment is estimated to have a residual value of $20,000 Requirements 1. Use Excel to prepare depreciation schedules for straight-line, double-declining-balance, and units-of-production methods 2. Prepare a second depreciation schedulfor double-declining-balance method, using the Excel function DDB. The DDB function cannot be used in the last year of the asset's useful life. 3. At December 31, 2018, Fraser River is trying to determine if it should sell the factory equipment. Fraser River will only sell the factory equipment ifthe company earns a gain of at least $6,000. For each of the depreciation methods, what is the minimum amount that Fraser River will sell the factory equipment for in order to have a gain of $6,000? Excel Skills 1. Create fornlulas with absolute and relative cell references 2. Format thecells as accounting number format. 3. Use the Excel function DDB to calculatedouble-declining-balancedepreciation