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 $4.40 per hour. Year Schedule A Schedule B Schedule C 1 $12,000 $10,125 $9,240 2 7,200 13,500 6,600 3 4,320 13,500 7,480 4 2,592 13,500 6,600 5 888 3,375 4,400 6 7,040 7 4,840 8 Total $27,000 $54,000 $46,200 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 B Asset with variable in-service time C Asset generating greater revenues in the early years A 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 a30204098030fda_1 fill in the blank a30204098030fda_2 fill in the blank a30204098030fda_3 Residual value $fill in the blank a30204098030fda_4 $fill in the blank a30204098030fda_5 $fill in the blank a30204098030fda_6 Asset cost $fill in the blank a30204098030fda_7 $fill in the blank a30204098030fda_8 $fill in the blank a30204098030fda_9 Total operating hours fill in the blank a30204098030fda_10 fill in the blank a30204098030fda_11 fill in the blank a30204098030fda_12 Final Questions Review the depreciation schedules on the Patterson Planning Corp. panel, then answer the following questions. 1. How would you adjust Schedule B if, at the beginning of Year 3, the asset was estimated to have 5 more years of life remaining, but with a residual value that was $1,500 higher? The total depreciation for this asset now will be $fill in the blank 4979eb088076fbd_1. The depreciation amount for Year 3 will be $fill in the blank 4979eb088076fbd_2. 2. What is the difference between the journal entries for discarding or selling a fixed asset? The journal entry to differs from the other entry because . 3. Complete the following sentences about depreciation. (A) When a fixed asset is fully depreciated it is if . (B) The balance of the accumulated depreciation account represents . (C) Depreciation measures .