Analyze long-term asset depreciation

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Reference no: EM133492616

Depreciation Analysis: Straight-Line Method versus Double Declining Balance Method

Completing this activity will help you learn to:

Question 1. analyze long-term asset depreciation by the straight-line method and the double declining balance method.

Question 2. create Excel calculations using cell references.

Question 3. create Excel calculations using cell names.

Question 4. create a limit for a cell value.

Question 5. create Excel bar charts.

Case scenario: You are working at an industrial supplier, Great Gadgets. You are planning to purchase a truck for work purposes. The truck costs $50,000 to purchase. You plan to use it for five years. After five years, you can sell it for $6,000. You want to find the depreciation expense per year. You also want to find the book value at the end of each year for the next five years. You want to perform your analysis of two different depreciation methods: the straight-line method and the double declining balance method. Compare your results from the two methods. Create a reusable Excel spreadsheet to perform this analysis.

Reference no: EM133492616

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