Fixed Asset Accounting: Depreciation Methods, Disposals, Revaluation & Componentisation

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Sort eight 2026 purchases at Ridgeway Freight into assets and expenses with an IF formula, total what goes on the balance sheet and decide two judgement calls.
• Work out the initial cost of Ridgeway Freight’s new parcel sorting machine from the supplier and contractor invoices, leaving out what does not belong in it.
• Calculate the months each asset was in service in 2026, the straight-line charge for the year and the accumulated depreciation in Ridgeway Freight’s asset register.
• Build five-year schedules for delivery truck T-11 with double-declining balance and units of production, then chart how the carrying amount falls under each method.
• Update the depreciation of Ridgeway’s warehouse racking after a review shortens its life and lowers its residual value, without touching earlier years.
• Part-exchange Ridgeway’s old forklift for a new one, depreciate it up to the disposal date, work out the loss and record all six entries.
• Revalue Ridgeway’s depot building, take the surplus to other comprehensive income, depreciate the new amount and handle a later fall in value.
• Depreciate Ridgeway’s new cross-dock building by component, complete the 2026 roll-forward by asset class and chart the bridge from opening to closing carrying amount.