ACC 201 GBC Calculating the Financial Statements of Dordine Company Using Excel

Using the Excel file provided below as a starting point, or by creating your own Excel file, complete the following problem, and submit your assignment as an attachment here. Be sure to save your work before you submit, and present your work in a reasonable format with major answers highlighted. Because you have plenty of time to do this assignment, and given that the textbook is available for your use, this assignment should really be close to perfect.

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Here is the problem:

Dordine Company acquired equipment on March 1, 2020, at a cash cost of $1,000,000. Transportation charges amounted to $12,000, installation cost was $40,000, testing costs were $30,000, and the payment of a fine for not getting the proper permit for moving the equipment was $1,000.

The equipment was estimated to have a useful life of 12 years and a salvage value of $60,000 at the end of its life. It was further estimated that the equipment would be used in the production of $364,000 units of product during its life. During the 2020 year, 40,000 units of product were produced.

Required:

A. Prepare a schedule to calculate the original cost and the depreciable base of the asset.

B. Compute the depreciation to the nearest dollar for the year ended December 31, 2020, using the straight-line method.

C. Compute the depreciation to the nearest dollar for the year ended December 31, 2020, using the units-of-production method.

D. Compute the depreciation to the nearest dollar for the year ended December 31, 2020, using the sum-of-the-years-digits method.

E. Compute the depreciation to the nearest dollar for the year ended December 31, 2020, using the double-declining balance method.

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Here is a very rough document that you might use to get you started on this assignment. Please feel free to modify it to the extent necessary to complete this assignment. In doing so, please change the name of the file to include your name before submitting it.