Function: SUM; Formula: Divide, Subtract, Multiply; Cell Referencing

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BE$9\mathrm{.}6$ Using Excel to Calculate Double$-$Diminishing$-$Balance Depreciation Student Work Area

Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem and work area as indicated.

PROBLEM

Buckingham Ltd$.$ purchased a delivery truck on January $1,2021.$ Buckingham has a December $31$ year end. Additional information concerning the truck follows.

Using the diminishing$-$balance method and assuming the depreciation rate is equal to double the straight$-$line rate, calculate the depreciation:

Purchase price of truck $$80,000$

Residual value $8,000$

Useful life $4$ years a$.$ For each year of the truck$$s life

Rate

January $1$ Carrying Amount December $31$ Carrying Amount

Depreciation Expense

Rate

$20210\%$

$20220\%$

$20230\%$

$20240\%$

b$.$ In total over the truck$$s life

Total