Lesson ProgressPhase 3 of 6
Phase 3Guided Practice
Guided Practice: Project Rehearsal: Depreciation Workbook with Shared Data
Trace the logic chain from asset register to recommendation with shared data
🔍 Phase 3: Guided Audit
Trace the Logic Chain
Open your shared rehearsal workbook. We will trace how a depreciation recommendation connects back to the asset register and schedule. Every number in a good recommendation has a home in an earlier sheet.
Follow this chain:
- Asset Register → What assets exist and what are their key numbers?
- Depreciation Schedule → How does each asset lose value each year?
- Method Comparison → How do methods differ in expense timing?
- Recommendation → What policy do we recommend and why?
Asset Register Preview
The asset register is the source of truth. Every calculation traces back here.
| A | B | C | D | E | F | G | H | I | J | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Asset | Cost | Useful Life | Salvage Value | Method | Purchase Date | ||||
| 2 | Delivery Van | $35,000 | 5 years | $5,000 | Straight-Line | Jan 2024 | ||||
| 3 | CNC Machine | $85,000 | 10 years | $10,000 | DDB | Mar 2024 | ||||
| 4 | Office Furniture | $12,000 | 7 years | $2,000 | Straight-Line | Jun 2024 | ||||
| 5 | Server Equipment | $22,000 | 4 years | $3,000 | DDB | Sep 2024 | ||||
| 6 | ||||||||||
| 7 | ||||||||||
| 8 | ||||||||||
| 9 | ||||||||||
| 10 |
Depreciation Schedule Preview
Check that Book Value = Cost − Accumulated Depreciation for every row.
| A | B | C | D | E | F | G | H | I | J | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Asset | Year | Depreciation Expense | Accum. Depreciation | Book Value | |||||
| 2 | Delivery Van | 2024 | $6,000 | $6,000 | $29,000 | |||||
| 3 | Delivery Van | 2025 | $6,000 | $12,000 | $23,000 | |||||
| 4 | CNC Machine | 2024 | $17,000 | $17,000 | $68,000 | |||||
| 5 | CNC Machine | 2025 | $13,600 | $30,600 | $54,400 | |||||
| 6 | ||||||||||
| 7 | ||||||||||
| 8 | ||||||||||
| 9 | ||||||||||
| 10 |
Audit Questions
Look at your workbook and answer these questions:
- Where does the recommendation get its book value numbers? Can you point to the exact cells?
- Are all depreciation formulas linked to the asset register, or are any values hard-coded?
- Does the method comparison sheet clearly show which method front-loads expense?
- What would make this workbook feel weak, confusing, or untrustworthy to a manager?
Audit Comprehension Check
Evidence Chain Check
Confirm you can trace recommendations back to workbook evidence
1. If the recommendation says "DDB reduces book value faster in early years," which sheet proves this?
2. What would make this workbook feel untrustworthy?
3. If book value in year 3 does not equal cost minus accumulated depreciation, what does that mean?
0 of 3 questions answered