Use the straight-line (SLN) and double-declining-balance (DDB) functions in Excel or another spreadsheet program to calculate the required amounts in the following situations.

a. Machinery was purchased at its invoice price of $296,016. This amount did not include sales tax of 6.15%. The estimated useful life was 13 years and residual value was estimated at $15,000. Use the straight-line depreciation method. (1) Determine the amount of depreciation for the first year of the machinery’s use. (2) Determine the amount of depreciation for the eighth year of the machinery’s use. (3) Determine the book value of the machinery at the end of the 12th year of use.

b. Computer equipment having an expected life of five years was purchased at a cost of $112,316. Because the new equipment differed from the old, minor remodeling of the office space was necessary at a cost of $6,152 before installation could occur. The computer equipment is expected to have a $5,000 residual value. Use the double-declining balance method. (1) Determine the amount of depreciation for the first year of the equipment’s life. (2) Determine the amount of depreciation for the fourth year of the equipment’s life.

c. A patent was acquired at a cost of $1.3 million. The patent has a remaining legal life of 13 years, but technology is changing so rapidly in this industry that management believes the patent rights will be worthless at the end of six years. Straight-line amortization is used. (1) Determine the amount of amortization for the fourth year of the patent’s life. (2) Determine the book value of the patent at the end of six years.