CIS201 Program Assignment 3: Capital Assets, Cars, Equity

Cis201 Program Assignment 3descriptioncapital Assets Cars Equipment

Capital assets (cars, equipment, buildings etc.) are not expensed when you buy them but are depreciated over their estimated useful life (n). With a straight-line method of depreciation each year the capital asset depreciates (1/n)th of its cost (minus salvage value which is the value it can be sold for at the end of its useful life). Thus if an asset costs $21,000 has a salvage value of $1,000 and a useful life of 4 years its annual depreciation is figured: ($21,000 - $1,000)/4 = $5,000 a year. Its depreciation schedule would look like this (based on the asset being purchased in 2015): The ending value at the end of year 4 would be the salvage value.

Write a program that:

  • Includes section comments (one for the program and sections of the program) and any line comments needed (for lines of code that are not obvious to another programmer)
  • Starts by declaring all variables needed (and any constants if applicable)
  • Makes sure you initialize all variables to their null value
  • Includes an explanatory print statement to explain to the user what the program is about and how to enter data
  • Prompts for input of:
    • Asset name (string)
    • Use a while loop to ensure the user enters correct information (the asset name as a string does not require a value error loop)
    • The year the asset was purchased (integer)
    • Use a While Value Error Loop to ensure correct data entry
    • The cost of the asset (float or monetary value)
    • Use a While Value Error Loop to ensure correct data entry
    • The salvage value of the asset (float)
    • Use a While Value Error Loop to ensure correct data entry
    • The useful life of the asset (integer)
    • Use a While Value Error Loop to ensure correct data entry
  • Use new line codes to add spacing and improve readability of prompts; prompts should be free of grammatical and spelling errors; currency prompts should include the dollar sign
  • Once the input is entered, perform calculations for straight-line depreciation
  • Set up variables for looping as needed
  • Provide initial output explaining the asset depreciation schedule
  • Use a for loop to create and display the depreciation schedule table, with columns for year, depreciation expense, accumulated depreciation, and ending book value, formatted in table style
  • Output the depreciation schedule showing the information from input used for depreciation; all currency values should have dollar signs, commas, and be rounded to 2 decimal places

This program should be your own work; sharing files with others will result in zeros for both students involved.

Paper For Above instruction

Depreciation of capital assets is a fundamental concept in accounting that allows organizations to allocate the cost of tangible assets over their useful lives systematically. The most common method used for depreciation is the straight-line approach, which divides the depreciable amount equally across the asset's lifespan. This method simplifies financial reporting and reflects the consistent consumption of asset benefits over time.

The core principle of straight-line depreciation involves calculating the annual depreciation expense by subtracting the salvage value—the estimated residual value at the end of the asset's life—from the initial cost, then dividing this amount by the asset's useful life expressed in years. Mathematically, this is represented as:

Annual Depreciation Expense = (Cost of Asset – Salvage Value) / Useful Life

For example, consider an asset valued at $21,000 with a salvage value of $1,000 and a useful life of 4 years. The annual depreciation expense would be ($21,000 - $1,000) / 4 = $5,000. This expense is recorded each year, reducing the book value of the asset on the balance sheet. Over the years, the accumulated depreciation increases, and the book value decreases accordingly, until it reaches the salvage value at the end of its useful life.

Implementing this depreciation schedule in a computer program involves various steps, notably user interaction, data validation, calculations, and output formatting. An essential aspect is ensuring the integrity of user input, particularly for numeric data, which is handled via while loops that prompt re-entry until valid data is received. For string data, such as asset name, simpler validation suffices.

The program begins with comprehensive initialization of variables to prevent undefined states and includes explanatory prompts guiding the user through each input. These prompts emphasize entering correct and non-empty data, with proper prompts indicating the expected input type, including dollar signs for monetary values. Once input is gathered, calculations follow for each year's depreciation expense, accumulated depreciation, and remaining book value.

The output manifests as a formatted table displaying each year's depreciation details, aligned for clarity, and rounded to two decimal places. Utilizing string formatting techniques, such as the format method or f-strings, enhances readability and professionalism of the output.

In practice, code implementation separates concerns into sections, such as input validation, computation, and output formatting, with descriptive comments. This approach fosters clear, maintainable, and adaptable code. Furthermore, adhering to coding best practices, including proper variable naming and commenting, ensures the code remains understandable and functional for future modifications or audits.

In conclusion, employing a structured approach to developing a straight-line depreciation program integrates financial principles with programming techniques. Proper data validation, systematic calculations, and clear output formatting collectively produce an effective tool to assist in financial reporting and asset management, fundamental skills in accounting and software development contexts.

References

  • Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management. Cengage Learning.
  • Harrison, W. T., & Horngren, C. T. (2018). Financial & Managerial Accounting. Pearson.
  • American Institute of CPAs (AICPA). (2020). Generally Accepted Accounting Principles (GAAP). AICPA Journal.
  • Gibson, C. H. (2021). Financial Reporting and Analysis. Cengage Learning.
  • Wild, J. J., & Shaw, K. W. (2020). Financial Accounting. McGraw-Hill Education.
  • Financial Accounting Standards Board (FASB). (2019). Accounting Standards Updates. FASB.
  • Weetman, P. (2019). Financial & Management Accounting. Pearson.
  • Knox, P., & Flanagan, J. (2018). Introduction to Financial Accounting. Cengage.
  • Lebans, M. (2020). Practical Examples of Depreciation Calculations. Journal of Accounting & Finance.
  • AccountingTools. (2021). How to Calculate Straight-Line Depreciation. https://www.accountingtools.com/articles/2017/5/2/how-to-calculate-straight-line-depreciation

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