Question

PLEASE SHOW WORK IN EXCEL

The Masters Corporation purchased a piece of machinery for$300,000. The expected useful life (EUL) of the machine is 10years. Machinery of this type normally has a salvage value ofapproximately 17 percent of the purchase price (use $50,000 forsalvage value in this case.) Using the accounting/finance functionsin Excel, complete the depreciation worksheet in Exercise11.xls inthe following steps: 1. Use the following three methods to computethe depreciation in columns B, C, and D: (1) doubledecliningbalance, (2) straight-line, and (3) sum-of-the-years’ digits.Columns F, G, and H should show the book value of each method forthe 10 periods (10 years). Formulas should be used in the emptycells so that a change in the cost, salvage value, or expecteduseful life of the machinery automatically updates the worksheet.2. Print cells A8:H10 into one page with proper format. 3. Printcell formulas in Cells A15:H15. You may edit the cell formulas intoseveral lines if the cell formulas from Row 12 get to be too longto print into just one line. 4. Prepare a line chart of the bookvalue each year for each method and a bar chart showing the annualdepreciation amounts. Appropriately size and place both charts intoone page. 5. Print both charts in Step 4 into one page. Provideproper heading, legends, and size. 6. Change the cost of themachine to $500,000, and the salvage value to be 17% of thepurchase price as it is generally used in this industry, but keepthe expected useful life still at 10 years. Compute thedepreciation expenses and book values again using the threedepreciation methods. 7. Print cells A8:H10 into one page withproper format. Required: Printouts from Steps 2,3, 5 and 7.

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