Question: You had a machine shed built and bought a tractor. The machine shed cost $100,000 and the tractor cost $80,000. For your internal farm accounting purposes, you will depreciate the machine shed over 15 years and the tractor over 7 years. The machine shed will have zero salvage value, but the tractor will have a salvage value of $20,000.

For this problem, you will make 4 tables that report the annual amount of depreciation during each year and the value of the asset at the beginning and at the end of each year. There will be 2 tables for the machine shed and 2 for the tractor. The 2 tables for each asset will each use a different depreciation method. The first table will use Straight Line depreciation, the second will use 150% Declining Balance. You will do the full life cycle for each asset (i.e., 10 years for the shed and 5 years for the tractor). For the 150% Declining Balance, do not let the asset value fall below the salvage value (set depreciation to zero if needed) and if the implied value does not reach the salvage value by the end of the useful life, take the remaining value as depreciation in the last year.

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Solution: The downloadable solution consists of 4 pages
Deliverable: Word Document