Mastery Problem: Long-Term Assets: Fixed and Intangible

Patterson Planning Corp.,

You have been hired by Patterson Planning Corp., an events planning company that recently had a fire in which some of the accounting records were damaged.

In reviewing the fixed asset records, you find three depreciation schedules that are not labeled. They are listed in the following table. One of the assets has a depreciation rate of $4.30 per hour.

Year	Schedule A			Schedule B			Schedule C
1		$4,000			$10,125			$8,600
2		2,400			13,500			6,450
3		1,440			13,500			7,310
4		864			13,500			6,450
5		296			3,375			4,300
6								6,880
7								4,730
8
Total		$9,000			$54,000			$44,720

Depreciation

1. Determine which depreciation method is shown in each schedule on the Patterson Planning Corp. panel. Then match each schedule to the asset description that best characterizes the type of assets often depreciated using that method.

Asset Description	Depreciation Schedule Used
Asset producing steady revenues		ABCB
Asset with variable in-service time		ABCC
Asset generating greater revenues in the early years		ABCA

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Consider how each type of depreciation is computed.

2. For each of the depreciation schedules shown on the Patterson Planning Corp., fill in the following information. If an amount box does not require an entry, leave it blank.

	A			B			C
Useful life		fill in the blank 80500308bfc3f8a_1			fill in the blank 80500308bfc3f8a_2			fill in the blank 80500308bfc3f8a_3
Residual value		$fill in the blank 80500308bfc3f8a_4			$fill in the blank 80500308bfc3f8a_5			$fill in the blank 80500308bfc3f8a_6
Asset cost		$fill in the blank 80500308bfc3f8a_7			$fill in the blank 80500308bfc3f8a_8			$fill in the blank 80500308bfc3f8a_9
Total operating hours		fill in the blank 80500308bfc3f8a_10			fill in the blank 80500308bfc3f8a_11			fill in the blank 80500308bfc3f8a_12

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