COST 300000 SALVAGE 50000 LIFE 10 The Masters Corporation Depreciation Analysis Book Value Yearly Depreciation PERIOD BV DD BV SL BV SYD PERIOD DOUBLE D STRAIGHT SUM YRS 0 300000 300000 300000 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 SALVAGE The Masters Corporation purchased a pieceof machinery for $300,000. The expected useful life (EUL) of themachine is 10 years. Machinery of this type normally has a salvagevalue of approximately 17 percent of the purchase price (use$50,000 for salvage value in this case.) Using theaccounting/finance functions in Excel, complete the depreciationworksheet in Exercise11.xls in the following steps: 1. Use thefollowing three methods to compute the depreciation in columns B,C, and D: (1) doubledeclining balance, (2) straight-line, and (3)sum-of-the-yearsâ digits. Columns F, G, and H should show the bookvalue of each method for the 10 periods (10 years). Formulas shouldbe used in the empty cells so that a change in the cost, salvagevalue, or expected useful life of the machinery automaticallyupdates the worksheet. 2. Print cells A8:H10 into one page withproper format. 3. Print cell formulas in Cells A15:H15. You mayedit the cell formulas into several lines if the cell formulas fromRow 12 get to be too long to print into just one line. 4. Prepare aline chart of the book value each year for each method and a barchart showing the annual depreciation amounts. Appropriately sizeand place both charts into one page. 5. Print both charts in Step 4into one page. Provide proper heading, legends, and size. 6. Changethe cost of the machine to $500,000, and the salvage value to be17% of the purchase price as it is generally used in this industry,but keep the expected useful life still at 10 years. Compute thedepreciation expenses and book values again using the threedepreciation methods. 7. Print cells A8:H20 into one page withproper format. Required: Printouts from Steps 2,3, 5 and 7.

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COST 300000          SALVAGE 50000          LIFE 10                     The Masters Corporation         Depreciation Analysis                Book Value      Yearly Depreciation PERIOD BV DD BV SL BV SYD    PERIOD DOUBLE D STRAIGHT SUM YRS 0 300000 300000 300000    1    1       2    2       3    3       4    4       5    5       6    6       7    7       8    8       9    9       10    10    SALVAGE   The Masters Corporation purchased a pieceof machinery for $300,000. The expected useful life (EUL) of themachine is 10 years. Machinery of this type normally has a salvagevalue of approximately 17 percent of the purchase price (use$50,000 for salvage value in this case.) Using theaccounting/finance functions in Excel, complete the depreciationworksheet in Exercise11.xls in the following steps: 1. Use thefollowing three methods to compute the depreciation in columns B,C, and D: (1) doubledeclining balance, (2) straight-line, and (3)sum-of-the-yearsâ digits. Columns F, G, and H should show the bookvalue of each method for the 10 periods (10 years). Formulas shouldbe used in the empty cells so that a change in the cost, salvagevalue, or expected useful life of the machinery automaticallyupdates the worksheet. 2. Print cells A8:H10 into one page withproper format. 3. Print cell formulas in Cells A15:H15. You mayedit the cell formulas into several lines if the cell formulas fromRow 12 get to be too long to print into just one line. 4. Prepare aline chart of the book value each year for each method and a barchart showing the annual depreciation amounts. Appropriately sizeand place both charts into one page. 5. Print both charts in Step 4into one page. Provide proper heading, legends, and size. 6. Changethe cost of the machine to $500,000, and the salvage value to be17% of the purchase price as it is generally used in this industry,but keep the expected useful life still at 10 years. Compute thedepreciation expenses and book values again using the threedepreciation methods. 7. Print cells A8:H20 into one page withproper format. Required: Printouts from Steps 2,3, 5 and 7.

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COST	300000
SALVAGE	50000
LIFE	10

The Masters Corporation
Depreciation Analysis
						Book Value
	Yearly Depreciation			PERIOD	BV DD	BV SL	BV SYD
PERIOD	DOUBLE D	STRAIGHT	SUM YRS	0	300000	300000	300000
1				1
2				2
3				3
4				4
5				5
6				6
7				7
8				8
9				9
10				10				SALVAGE
The Masters Corporation purchased a pieceof machinery for $300,000. The expected useful life (EUL) of themachine is 10 years. Machinery of this type normally has a salvagevalue of approximately 17 percent of the purchase price (use$50,000 for salvage value in this case.) Using theaccounting/finance functions in Excel, complete the depreciationworksheet in Exercise11.xls in the following steps: 1. Use thefollowing three methods to compute the depreciation in columns B,C, and D: (1) doubledeclining balance, (2) straight-line, and (3)sum-of-the-yearsâ digits. Columns F, G, and H should show the bookvalue of each method for the 10 periods (10 years). Formulas shouldbe used in the empty cells so that a change in the cost, salvagevalue, or expected useful life of the machinery automaticallyupdates the worksheet. 2. Print cells A8:H10 into one page withproper format. 3. Print cell formulas in Cells A15:H15. You mayedit the cell formulas into several lines if the cell formulas fromRow 12 get to be too long to print into just one line. 4. Prepare aline chart of the book value each year for each method and a barchart showing the annual depreciation amounts. Appropriately sizeand place both charts into one page. 5. Print both charts in Step 4into one page. Provide proper heading, legends, and size. 6. Changethe cost of the machine to $500,000, and the salvage value to be17% of the purchase price as it is generally used in this industry,but keep the expected useful life still at 10 years. Compute thedepreciation expenses and book values again using the threedepreciation methods. 7. Print cells A8:H20 into one page withproper format. Required: Printouts from Steps 2,3, 5 and 7.