Determining the Method Used to Produce a Depreciation Visualization

The Excel file associated with this exercise includes four charts depicting depreciation under four different methods over the life of a

fixed asset with a useful life of five years. In this exercise, we match each depreciation method provided to the appropriate depreciation

chart based upon the trend in depreciation over the five year period.

Required

Download the following Excel file: Charts

Calculate the fixed asset's original cost if the residual value of the asset is $$5,000.$

Original cost: $

Match each of the charts with the depreciation method used: straight$-$line, sum$-$of$-$the$-$years'$-$digits, declining$-$balance, or units$-$of$-$

production methods.

Depreciation Method

Chart $1$:

Chart $2$:

Chart $3$:

Chart $4$:

Indicate which chart$($s$)$ can be prepared upon purchase of the fixed asset and which chart$($s$)$ can only be prepared over time.

Chart$($s$)$ prepared upon purchase of fixed asset:

Chart$($s$)$ can only be prepared over time