$2$ of $2$

$5-$

Swanson & Hiller, Inc., purchased a new machine on September $1$ of the current year at a cost of $$120,000.$ The machine's estimated useful life at the time of the purchase was five years, and its residual value was $$10,000.$ The company reports on a calendar year basis.

Required:

a$-1.$ Prepare a complete depreciation schedule, beginning with the current year, using the straight$-$line method. $($Assume that the half$-$year convention is used$).$

a$-2.$ Prepare a complete depreciation schedule, beginning with the current year, using the $200$ percent declining$-$balance method. $($Assume that the half$-$year convention is used$).$

a$-3.$ Prepare a complete depreciation schedule, beginning with the current year, using the $150$ percent declining$-$balance, switching to straight$-$line when that maximizes the expense. $($Assume that the half$-$year convention is used$).$