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.· Bison’s 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 depreciationUse 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
