E10.1 (LO1) Depreciation Computations—SL, SYD, DDB
Deluxe Ezra Company purchases equipment on January 1, Year 1. The following information is
provided concerning the acquisition.
Cost of equipment $ 469,000
Estimated service life in years 12 years
Salvage value $ 40,000
Instructions
a. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line
depreciation method.
b. Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-years digits
depreciation method.
c. Compute the amount of depreciation for each of Years 1 through 3 using the double-declining
balance method.
NOTE: Enter one of Excel's depreciation formulas with cell references, into the yellow
shaded input cells.
a. Using Excel's SLN function
b. Using Excel's SYD function
Year 1
Year 2
Year 3
c. Using Excel's DDB function:
Year 1
Year 2
Year 3
*Due to more precise rounding in Excel, amounts may differ from the solutions manual.
, Solution: E10.1 (LO1) Depreciation Computations—SL, SYD, DDB
Deluxe Ezra Company purchases equipment on January 1, Year 1. The following information is
provided concerning the acquisition.
Cost of equipment $ 469,000
Estimated service life in years 12 years
Salvage value $ 40,000
Instructions
a. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line
depreciation method.
b. Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-years digits
depreciation method.
c. Compute the amount of depreciation for each of Years 1 through 3 using the double-declining
balance method.
NOTE: Enter one of Excel's depreciation formulas with cell references, into the yellow
shaded input cells.
a. Using Excel's SLN function $ 35,750
b. Using Excel's SYD function
Year 1 $ 66,000
Year 2 60,500
Year 3 55,000
Deluxe Ezra Company purchases equipment on January 1, Year 1. The following information is
provided concerning the acquisition.
Cost of equipment $ 469,000
Estimated service life in years 12 years
Salvage value $ 40,000
Instructions
a. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line
depreciation method.
b. Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-years digits
depreciation method.
c. Compute the amount of depreciation for each of Years 1 through 3 using the double-declining
balance method.
NOTE: Enter one of Excel's depreciation formulas with cell references, into the yellow
shaded input cells.
a. Using Excel's SLN function
b. Using Excel's SYD function
Year 1
Year 2
Year 3
c. Using Excel's DDB function:
Year 1
Year 2
Year 3
*Due to more precise rounding in Excel, amounts may differ from the solutions manual.
, Solution: E10.1 (LO1) Depreciation Computations—SL, SYD, DDB
Deluxe Ezra Company purchases equipment on January 1, Year 1. The following information is
provided concerning the acquisition.
Cost of equipment $ 469,000
Estimated service life in years 12 years
Salvage value $ 40,000
Instructions
a. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line
depreciation method.
b. Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-years digits
depreciation method.
c. Compute the amount of depreciation for each of Years 1 through 3 using the double-declining
balance method.
NOTE: Enter one of Excel's depreciation formulas with cell references, into the yellow
shaded input cells.
a. Using Excel's SLN function $ 35,750
b. Using Excel's SYD function
Year 1 $ 66,000
Year 2 60,500
Year 3 55,000
