Question

Accounting study guide help

Plant Assets, Natural Resources, and Intangibles Using Excel to prepare depreciation schedules The Fraser River Corporation has purchased a new piece of factory equipment on January 1, 2018, and wishes to compare three depreciation methods: straight-line, double-declining-balance, and units-of-production. The equipment costs $400,000 and has an estimated useful life of four years, or 8,000 machine hours. At the end of four years, the equipment is estimated to have a residual value of $20,000. Use the blue shaded areas on the ENTER-ANSWERS tab for inputs. ALWAYS use cell references and formulas where appropriate to receive full credit. Copy/pasting values will NOT earn full points. Requirements 1 Use Excel to prepare depreciation schedules for straight-line, double-declining-balance, and units-of-production methods. 2 Prepare a second depreciation schedule for double-declining-balance method, using the Excel function DDB. The DDB function cannot be used in the last year of the asset's useful life. 3 At December 31, 2018, Fraser River is trying to determine if it should sell the factory equipment. Fraser River will only sell the factory equipment if the company earns a gain of at least $6,000. For each of the depreciation methods, what is the minimum amount that Fraser River will sell the factory equipment for in order to have a gain of $6,000? *For all requirements, enter all amounts as positive values. Do not use a minus sign or parentheses for any values. Excel Skills 1 Create formulas with absolute and relative cell references. 2 Format the cells as accounting number format. 3 Use the Excel function DDB to calculate double-declining-balance depreciation. Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS b. Save your solution in the folder you just created; add-solution-date to end of file name 2 Upload and submit your file to be graded. a. Navigate back to the activity window - screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the file you just saved and click Open c. Click Upload button under step 3 d. Click Submit button under step 4

So iv mostly been getting stuck on making the functions work and doing the part were its saying don't use cell references to the values

Answer 1

Please find attachment for my answer in image, I trying to upload through Excel file but it is showing error so I upload my answer in image format.

Please see the image for the answer.
Units of Production Depreciation Accumulated Year Per Unit Machine Hours Depreciation Exp Depreciation Book Value 47.5 2400 $114,000.00 $ 114,000.00 $286,000.00 47.5 1800 $85,500.00 $199,500.00 $200,500.00 47.5 2480 $117,800.00 $317,300.00 $82,700.00 47.5 13201 $62,700.00 $380,000.00 $20,000.00 The Minimum amount to sell the factory equipment in order to have a gain of 6000 at the Year 1 $292,000.00

$400,000.00 $20,000.00 Data Cost Residual Value Useful Life (Years) Useful Life (Hours) Gain End of the Year 1 8000 $6,000.00 Straight Line Depreciable Year cost Rate 11 $380,000.00 2 $380,000.00 3 $380,000.00 4 $380,000.00 Accumulated Depriciation Exp Depreciation Book Value $25.00 $95,000.00 $95,000.00 $305,000.00 $25.00 $95,000.00 $190,000.00 $210,000.00 $25.00 $95,000.00 $285,000.00 $115,000.00 $25.00 $95,000.00 $380,000.00 $20,000.00 The Minimum amount to sell the factory equipment in order to have a gain of 6000 at the Year 1 $311,000.00 Double Declining Balance Book Value Beginning of Accumulated Book Value Year Rate Depreciation Exp Depreciation End of Year 1 $400,000.00 $50.00 $200,000.00 $200,000.00 $200,000.00 2 $200,000.00 $50.00 $100,000.00 $300,000.00 $100,000.00 3 $100,000.00 $50.00 $50,000.00 $350,000.00 $50,000.00 $50,000.00 $50.00 $25,000.00 $375,000.00 $25,000.00 Double Declining Balance Using DDB Function Depreciation Accumulated Book Value End Exp Depreciation of Year $200,000.00 $200,000.00 $200,000.00 $100,000.00 $300,000.00 $100,000.00 $50,000.00 $350,000.00 $50,000.00 $25,000.00 $375,000.00 $25,000.00 The Minimum amount to sell the factory equipment in order to have a gain of 6000 at the Year 1 $206,000.00