Cost

Residual value
Useful life (years)
Useful life (units)
Acceleration rate

$
$

32,800
7,000
13
500,000
200%

Instructions: Enter known varables

here. These will be used for calculations
in all three models. If you are not using
one of the models, you can leave the
corresponding variable blank. Note: all
starting values represent the Southwest
Airlines example in the text.

Year

Dep. Expense (debit) Acc. Dep. (credit) Acc. Dep. Bal. BV

0
$
1 $
1,985 $
1,985 $
1,985 $
2 $
1,985 $
1,985 $
3,969 $
3 $
1,985 $
1,985 $
5,954 $
4 $
1,985 $
1,985 $
7,938 $
5 $
1,985 $
1,985 $
9,923 $
6 $
1,985 $
1,985 $
11,908 $
7 $
1,985 $
1,985 $
13,892 $
8 $
1,985 $
1,985 $
15,877 $
9 $
1,985 $
1,985 $
17,862 $
10 $
1,985 $
1,985 $
19,846 $
11 $
1,985 $
1,985 $
21,831 $
12 $
1,985 $
1,985 $
23,815 $
13 $
1,985 $
1,985 $
25,800 $
14 $
1,985 $
1,985 $
27,785 $
15 $
1,985 $
1,985 $
29,769 $
16 $
1,985 $
1,985 $
31,754 $
17 $
1,985 $
1,985 $
33,738 $
18 $
1,985 $
1,985 $
35,723 $
19 $
1,985 $
1,985 $
37,708 $
20 $
1,985 $
1,985 $
39,692 $
21 $
1,985 $
1,985 $
41,677 $
22 $
1,985 $
1,985 $
43,662 $
23 $
1,985 $
1,985 $
45,646 $
24 $
1,985 $
1,985 $
47,631 $
25 $
1,985 $
1,985 $
49,615 $

32,800
30,815
28,831
26,846
24,862
22,877
20,892
18,908
16,923
14,938
12,954
10,969
8,985
7,000
5,015
3,031
1,046
(938)
(2,923)
(4,908)
(6,892)
(8,877)
(10,862)
(12,846)
(14,831)
(16,815)

0
0
0
0
0
0
0
0
0
0
0
0
0
0
STOP

Instructions: All data is

populated from the "Input"
tab. The F column will tell
you in which term full
depreciation is reached.

2523.08

Year

Usage
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Dep. Expense Acc. Dep. BV

$
60,000 $
3,096 $ 3,096 $
60,000 $
3,096 $ 6,192 $
60,000 $
3,096 $ 9,288 $
60,000 $
3,096 $ 12,384 $
60,000 $
3,096 $ 15,480 $
60,000 $
3,096 $ 18,576 $
60,000 $
3,096 $ 21,672 $
60,000 $
3,096 $ 24,768 $
60,000 $
3,096 $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $
$
- $ 27,864 $

32,800
29,704
26,608
23,512
20,416
17,320
14,224
11,128
8,032
4,936
4,936
4,936
4,936
4,936
4,936
4,936
4,936
4,936
4,936
4,936
4,936
4,936
4,936
4,936
4,936
4,936

0
0
0
0
0
0
0
0
0
STOP

Instructions: Enter each

year's usage in the B
column and the rest will
automatically populate.
The F column will tell you
in which term full
depreciation is reached.

Year

Dep. Expense (debit) Acc. Dep. BV

0
$ 32,800
1 $
5,046 $ 5,046 $ 27,754
2 $
4,270 $ 9,316 $ 23,484
3 $
3,613 $ 12,929 $ 19,871
4 $
3,057 $ 15,986 $ 16,814
5 $
2,587 $ 18,573 $ 14,227
6 $
2,189 $ 20,762 $ 12,038
7 $
1,852 $ 22,614 $ 10,186
8 $
1,567 $ 24,181 $ 8,619
9 $
1,326 $ 25,507 $ 7,293
10 $
1,122 $ 26,629 $ 6,171
11 $
949 $ 27,578 $ 5,222
12 $
803 $ 28,382 $ 4,418
13 $
680 $ 29,061 $ 3,739
14 $
575 $ 29,637 $ 3,163
15 $
487 $ 30,123 $ 2,677
16 $
412 $ 30,535 $ 2,265
17 $
348 $ 30,883 $ 1,917
18 $
295 $ 31,178 $ 1,622
19 $
249 $ 31,428 $ 1,372
20 $
211 $ 31,639 $ 1,161
21 $
179 $ 31,818 $
982
22 $
151 $ 31,969 $
831
23 $
128 $ 32,097 $
703
24 $
108 $ 32,205 $
595
25 $
92 $ 32,296 $
504

0
0
0
0
0
0
0
0
0
0
STOP

Instructions: All dat

the "Input" tab. The F
you in which term ful
reached. Remember w
depreciation in the ac
adjust the book value
the residual value of
offsett the adjustmen
depreciation expense
For example, with the
$2315 book value wil
$2500 (the residual v
depreciation expense
adjust down to $4444

Instructions: All data is populated from

the "Input" tab. The F column will tell
you in which term full depreciation is
reached. Remember when you reach full
depreciation in the accelerated model,
adjust the book value in the last term to
the residual value of the asset and
offsett the adjustment in the
depreciation expense for the last term.
For example, with the sample data, the
$2315 book value will adjust up to
$2500 (the residual value), and the
depreciation expense for year 3 will
adjust down to $4444.