1. Mastery Problem: Long-Term Assets: Long-term or relatively permanent tangible assets such as equipment, machinery, and buildings that are used in the normal business operations and that depreciate over time.Fixed and Long-term assets that are useful in the operations of a business, are not held for sale, and are without physical qualities.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 The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life. 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		$8,000			$10,125			$9,890
   2		4,800			13,500			6,450
   3		2,880			13,500			7,310
   4		1,728			13,500			6,450
   5		592			3,375			4,300
   6								6,880
   7								4,730
   8
   Total		$18,000			$54,000			$46,010

   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 A B C
   Asset with variable in-service time		C A B C
   Asset generating greater revenues in the early years		A A B C

   Feedback

   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 745c22028faff8a_1			fill in the blank 745c22028faff8a_2			fill in the blank 745c22028faff8a_3
   The estimated value of a fixed asset at the end of its useful life.Residual value		$fill in the blank 745c22028faff8a_4			$fill in the blank 745c22028faff8a_5			$fill in the blank 745c22028faff8a_6
   Asset cost		$fill in the blank 745c22028faff8a_7			$fill in the blank 745c22028faff8a_8			$fill in the blank 745c22028faff8a_9
   Total operating hours		fill in the blank 745c22028faff8a_10			fill in the blank 745c22028faff8a_11			fill in the blank 745c22028faff8a_12

   Feedback

   Think about how depreciation is computed under each method.

   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 $3,000 higher?

   The total depreciation for this asset now will be _____________________ The depreciation amount for Year 3 will be_________________