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

Using Excel to Calculate Double$-$Diminishing$-$Balance Depreciation

PROBLEM

Audio Systems purchased a delivery truck on January $1,2024.$

The company has a December $31$ year end. Additional information concerning the truck follows.

Purchase price of truck

Residual value

Useful life

$$80,000$

$8,000$

$4$ years

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.

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

a$.$ For each year of the truck's life Rate

$\backslash$table$[[],[2021],[2022]]$

$2023$

$2024$

January $1$

Amount

Rate

Depreciation

December $31$

Carrying

Amount