Todd Service Company, on January 1 , 2 0 xx , purchased a machine that makes a
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Question:
Todd Service Company, on January xx purchased a machine that makes a particular part for dining room tables. The following information applies to the machine purchased:
Purchase price $
Delivery cost $
Installation Cost $
Estimated life years
Estimated parts produced
Salvage value $
The copies produced as follows:
Year parts
Year parts
Year parts
Year parts
Year parts
Using Excel, determine the amount of depreciation expense and the net book value for each of the five years years for MACRS using each of the following methods:
Straightline
Doubledeclining balance
Units of production
MACRS, assuming the machine is classified as fiveyear property
Use the following Excel template: Unit TemplateDownload Unit Template
After you completed the worksheet then copy it and assume the machine cost was $ instead of $all other information remains the same and calculate depreciation expense and the net book value for each of the five years years for MACRS using each of the following methods:
Straightline
Doubledeclining balance Be sure to double check the calculation for this type of depreciation.
Units of production
MACRS, assuming the machine is classified as fiveyear property
If you link the cells then this change of the cost of the machine will be easy to calculate.
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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