TEST II. Application. Answer each item by either: 1.) giving the complete Excel algorithm/formula; or 2.)

shortly narrating the small procedures for each small situation leading to the generation of a complete

Excel model.

2. The "Depreciation" worksheet for an equipment is shown as Figure 2. The raw data are written from

row 6 to 21. Write the algorithm for each cell:

a. C29 to C32 to show the yearly depreciation expense for the equipment through Straight Line

Method; (5 points)

b. D29 to D32 to show the yearly depreciation expense for the equipment through Units of

Production Method; (5 points) and

c. E29 to E32 to show the yearly depreciation expense for the equipment through Double

Declining Balance Method. (5 points)

A B C D E DEPREC Depreciation Data Section Cost of asset $350,000 Estimated salvage value $30,000 Estimated useful life in years Estimated life in units (miles, etc.)" 100,000 "Estimated Year Units 30,000 20,000 40,000 10,000 0 Depreciation Expense Double Straight Units of Declining Year Line Production Balance 1 FORMULA1 FORMULA5 FORMULA9 2 FORMULA2 FORMULA6 FORMULA10 3 FORMULA3 FORMULA7 FORMULA11 4 FORMULA4 FORMULA8 FORMULA12 5 oooo 0 Total Figure 2Depreciation Expense Formula Straight Line Method = (Asset Cost - Residual Value) Useful Life of the Asset Unit of Production (Asset Cost - Residual Value) x Units Produced Method Useful Life in Units of Production Double-Declining = 2x (Asset Cost - Residual Value) Balance Method Useful Life of the Asset