Hello - I need help with the following problem: At the beginning of the fiscal y

Question

Hello - I need help with the following problem:

At the beginning of the fiscal year, Borland Company acquired new equipment at a cost of $65,000. The equipment has an estimated life of five years and an estimated salvage value of $5,000.

Determine the annual depreciation for each of the five years of the estimated useful life of the equipment, the accumulated depreciation at the end of each year and the book value of each year using all the depreciation methods.

Please provide a detailed step-by-step answer in Excel.

Thank you!

Explanation / Answer

Particulars/Year 0 1 2 3 4 5 Cost of the equipment 65000 a>Depriciation in the straightline method=(Cost of equipment-Salvage Value)/5=(65000-5000)/5 12000 12000 12000 12000 12000 Accumulated Depriciation 12000 24000 36000 48000 60000 Book Value of the eqipment=Cost of Equipment-Depriciation 53000 41000 29000 17000 5000 b>Accelerated Depriciation Method where depriciation is @40% (=100*2/5) of the residual value of the equipment for 2years and then straightline method in last 3 years 24000 14400 7200 7200 7200 Accumulated Depriciation 24000 38400 45600 52800 60000 Book Value of the eqipment=Cost of Equipment-Depriciation 41000 26600 19400 12200 5000

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