The purpose of this assignment is to analyze long-term assets in the financial statements, and to consider
financial implications associated with long-term assets.
Complete Problem 10.5 from the textbook.
Use Microsoft Excel to show the calculations of depreciation prior to and after the recommended changes. In
addition, in a Microsoft Word document, write a memo from Patty Chu to Patty’s boss comparing the results of
the old and new depreciation expense amounts. Within the memo, discuss the impact to the income statement
and balance sheet if these changes are approved. Finally, provide a recommendation on whether the changes
should be made; use your calculations to support your position.