Bison Industries is in its first year of operations. Bison purchased the following assets during 2012:
· On January 1, Bison purchased land and buildings for $20 million. The amount allocated to land is $5 million and the amount allocated to the buildings is $15 million. The buildings expected useful life is 30 years and its salvage value is $2 million.
· On January 1, Bison purchased a delivery truck for $20,000. The truck has a useful life of 7 years and no expected salvage value.
· On April 1, Bison purchased some machinery for $1 million. The machinery is to be depreciated over 10 years and has a $50,000 salvage value.
· Bisons standard practice is to recognize depreciation expense to the nearest month in the year of acquisition or disposal.
· Bison uses the straight-line method of depreciation
Use MS Excel to prepare an annual depreciation schedule for the fixed assets of Bison Industries as of December 31, 2012. At a minimum the schedule should include the following information:
· Asset
· Cost
· Salvage Value
· Depreciable Cost
· Useful life
· Date of Acquisition
· Depreciation Expense* (for the 2012 income statement)
· Accumulated Depreciation* (as of December 31, 2012)
· Carrying Value* (as of December 31, 2012)
· Totals* for Cost, Depreciation Expense and Carrying Value