Question

Jirel Miller-Nobles be-12e-Using Excel Ch09-Ch10 Start - Rea. AutoSave Off Sign in X File Home Page Layout Formulas Insert Data View Review Help Power Pivot Search Paste Calibri Σ- General Conditional Formatting 11 Insert 4 $ -% 6849 A A A Cipbe BIU BFormat as Table Delete Paste Ideas Cell Styles Format Font Clipboard Alignment Number Styles Cells Editing Ideas E15 B A F G H L K N O 1 Plant Assets, Natural Resources, and Intangibles 2 Using Excel to prepare depreciation schedules 3 The Fraser River Corporation has purchased a new piece of factory equipment on January 1, 2018, and wishes to compare three 4 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 5 equipment is estimated to have a residual value of $20,000. 6 Use the blue shaded areas on the ENTER-ANSWERS tab for inputs. 7 ALWAYS use cell references and formulas where appropriate to receive full credit. Copy/pasting values will NOT earn full points. bse 8 9 10 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 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 equi 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 11 12 for in order to have a gain of $6,000? 13 "For all requirements, enter all amounts as positive values. Do not use a minus sign or parentheses for any values. 14 15 16 17 Excel Skills 18 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, 19 20 21 22 23 Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COLETED EXCEL PROJECTS 24 25 Instructions ENTERANSWERS the

IT IS REQUIRED THAT I ENTER FORMULAS! that is what i need help with, not the numerical answers

Answer 1

Data
Cost	4,00,000
Residual value	20,000
Useful life (yrs.)	4
Useful life (hrs)	8,000
Gain end of year 1	6,000
Straight line
Year	Depreciable cost	Rate	Depreciation expense	Accumulated Depreciation	Book value
1	3,80,000	25	95,000	95,000	2,85,000
2	3,80,000	25	95,000	1,90,000	1,90,000
3	3,80,000	25	95,000	2,85,000	95,000
4	3,80,000	25	95,000	3,80,000	-
The minimum amount to sell the factory equipment in order to have a gain of $6000 at the end of year					2,91,000
Double Declining Balance
Year	Book Value Beginning of Year	Rate	Depreciation expense	Accumulated Depreciation	Book Value End Of Year
1	4,00,000	50	2,00,000	2,00,000	2,00,000
2	2,00,000	50	1,00,000	3,00,000	1,00,000
3	1,00,000	50	50,000	3,50,000	50,000
4	50,000	50	30,000	3,80,000	20,000
The minimum amount to sell the factory equipment in order to have a gain of $6000 at the end of year					2,06,000
Double Declining Balance Using DDB Function
Year	Depreciation expense	Accumulated Depreciation	Book value
0	-		4,00,000
1	2,00,000	2,00,000	2,00,000		Cost	4,00,000
2	1,00,000	3,00,000	1,00,000		Salvage	20,000
3	50,000	1,50,000	50,000		Life	4
4	25,000	75,000	25,000	Reference
				Formula	=DDB(cost, salvage, life, period, (Factor))
				Year 1	'=DDB($H$30,$H$31,$H$32,B30)
				Year 2	'=DDB($H$30,$H$31,$H$32,B31)
				Year 3	'=DDB($H$30,$H$31,$H$32,B32)
				Year 4	'=DDB($H$30,$H$31,$H$32,B33)
Units of Production
Year	Depreciation per unit	Machine Hours	Depreciation expenses	Accumulated depreciation	Book Value
1	48	2,400	1,14,000	1,14,000	2,86,000
2	48	1,800	85,500	1,99,500	2,00,500
3	48	2,480	1,17,800	3,17,300	82,700
4	48	1,320	62,700	3,80,000	20,000
		8,000
The minimum amount to sell the factory equipment in order to have a gain of $6000 at the end of year					2,06,500