You are asked to make a depreciation schedule for a business asset. A depreciati

Question

You are asked to make a depreciation schedule for a business asset. A depreciation schedule shows the remaining value of the asset at the end of each time period. Create the following depreciation schedules using Excel. Ensure all calculations are computed with Excel formulas. Place each depreciation schedule on its own individual worksheet.

A $1,200 postage-printing system depreciated using the straight-line method over 4 years with a salvage value of $200. In your depreciation schedule, give the following information for each year: the year

Explanation / Answer

Depreciation Using Straight Line method: postage-printing system 1200 Less Solvage Value 200 Total Depreciation chargable 1000 Life in years 4 annula depreciation 250 Accumulated Year Depreciation Depreciation Book Value 0 1200 1 250 250 950 2 250 500 700 3 250 750 450 4 250 1000 200 Depreciation Using sum of year digit Year Depreciatio Accumulated Rate Depreciation Depreciation Book Value 0 0% 0.00 0.00 1200.00 1 40% 480.00 480.00 720.00 2 30% 216.00 696.00 504.00 3 20% 100.80 796.80 403.20 4 10% 40.32 837.12 362.88 Sum of year digit = 1+2+3+4 = 10 Depreciation Rate = (Remaining Life/Sum of year digit) So in first year Rate = 4/10 = 0.4

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