Question

Chapter 4 Assignments 1 Modify What SUP's Straight-Line Depreciation Schedule You are to add another depreciation schedule for What SUP. Use the ch4-01_SLN_student_name.xls worksheet you created in this chapter. Add a new depreciation worksheet, labeled Asset 1003, using the Move or Copy Shortcut menu. The asset to be depreciated is a forge purchased on January 1, 2018, for $85,000. It has an estimated salvage value of $4,000 and is to be depreciated over 3 years using the straight-line method. Update the summary worksheet to include information on this new asset. (Be careful to note the date this asset was acquired.) Save the file as ch4-02_SLN_student_name (replacing student_name with your name). Print the newly completed worksheet for Asset 1003 and the modified Summary worksheet in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer.

Answer 1

The formula for calculating depreciation as per Straight Line Method is

Depreciation = (Cost of the Asset - Salvage value) / Estimated Life of the Asset

Under Straight Line Method, the amount of depreciation will be the same throughout the life of the asset.

ch4-02 SLN student_name Microsoft Excel Home Insert Page Layout Formulas Data ReviewView s Cut i Copy yFormat Painter B 1 u. B. O-a- ほ漰還購函Merge & Center.迥 % ,Ma conditional Format Calcula General Normal Bad Check Cell Formatting as Table Clipboard Alignment Number C17 1 Asset 2 Date Acquired 3 Cost 4 Depreciation Method 5 Salvage Value 6 Estimated Useful Life Forge Jan 1, 2018 $85000 Straight Line Method $4000 3years DEPRECIATION ACCUMULATED EXPENSEDEPRECIATION YEAR 9 10 2018 2019 2020 TOTAL 27000 27000 27000 81000 27000 54000 81000 12 13 14 15 16 17 18 19 20 21 23 24 25 26 27 28 29 31 32 H Asset 1003