Math for Business Operations

Applied Accounting with Excel

UNIT08 - Lesson 6

Method Comparison and Investor-Ready Summary

45 minutes
Lesson Overview

Lesson Focus

Compare methods side by side in the workbook and add workbook checks

Key Unit Objectives

Enduring Understandings:

  • Long-term assets are tracked differently from everyday expenses because they provide value over multiple periods
  • Depreciation method choice affects reported profits, tax obligations, and asset book values over time
  • Professional asset tracking requires organized registers with cost, useful life, salvage value, and method documentation
  • The depreciation decision has real consequences for financial statement presentation and business decision-making

Lesson Activities

Activity 1: Side-by-Side Method Comparison in Excel
15 minutes

Add method comparison to the workbook

Details:

  • Create comparison sheet showing SLN vs. DDB for each asset
  • Calculate annual depreciation, accumulated depreciation, and book value for both methods
  • Add charts showing method impact on book value over time
  • Interpret: What does the comparison reveal about each method?
Activity 2: Workbook Checks and Validation
15 minutes

Add validation formulas to ensure workbook integrity

Details:

  • Accumulated depreciation should never exceed depreciable base
  • Book value should never drop below salvage value
  • Total depreciation across all assets should match summary totals
  • Add conditional formatting to flag any violations
Workbook Integrity Checks

Professional workbooks include built-in validation

  • Book value = Cost − Accumulated Depreciation (always)
  • Accumulated Depreciation ≤ Depreciable Base (never exceed)
  • Book Value ≥ Salvage Value (depreciation stops at floor)
  • Sum of annual depreciation = Total accumulated depreciation
Activity 3: Recommendation Draft
10 minutes

Begin drafting the depreciation policy recommendation

Details:

  • Structure: Claim → Evidence → Risk Analysis
  • Claim: Which method do we recommend and why?
  • Evidence: Cite specific numbers from asset register and schedule
  • Risk: What are the limitations or risks of the chosen method?
Activity 4: Preview Day 7
5 minutes

Set expectations for project rehearsal

Details:

  • Tomorrow: Practice with shared teacher dataset
  • Trace the logic chain from asset register to recommendation
  • Peer audit against Definition of Done
Required Materials
  • Method comparison guide
  • Workbook verification checklist
  • Recommendation template
  • Chart creation guide
Differentiation Strategies

For Struggling Students

  • • Scaffolded asset register with pre-filled asset descriptions
  • • Formula templates for depreciation calculations
  • • Step-by-step build guide with screenshots
  • • Peer mentoring partnerships with advanced students
  • • Reduced asset count while maintaining authentic business context

For Advanced Students

  • • Extension challenge: Add partial-year depreciation logic
  • • Compare three or more depreciation methods
  • • Leadership roles: Mentor teammates and facilitate peer critique
  • • Deep dive: Tax vs. book depreciation differences
  • • Research MACRS depreciation and its real-world application

For English Language Learners

  • • Depreciation terminology glossary with visual aids
  • • Key formulas explained in plain language with examples
  • • Recommendation templates with language scaffolding
  • • Visual depreciation schedule examples
  • • Partner with fluent English speakers for presentation preparation