Student Work Area

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

Buckingham Ltd$.$ purchased a delivery truck on January $1,2021.$ Buckingham 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

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

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

Total