Patterson & Associates, a small events planning company that recently had a fire in which some of the accounting records were damaged.

In reviewing the fixed asset records, threedepreciationschedules are found which 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 $6,000 $10,125 $8,600

2 $3,600 $13,500 $6,450

3 $2,160 $13,500 $7,310

4 $1,296 $13,500 $6,450

5 $444 $3,375 $4,300

6 $6,880

7 $4,730

8

Total $13,500 $54,000 $44,720

1. Which depreciation method is shown in each schedule on the Patterson & Associates panel? Which schedule used (A,B,C) ?

Asset Description Depreciation Schedule Used

Asset with variable in-service time ?

Asset generating greater revenues in the early years ?

Asset producing steady revenues ?

2.For each of the depreciation schedules shown on the Patterson & Associates panel, needs to be filled in the following information.

Year ScheduleA ScheduleB ScheduleC

Useful life ? ? ?

Residual value ? ? ?

Asset cost ? ? ?

TotalOperatinghours ? ? ?

3. How would Schedule B be adjusted 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 $2,500 higher?

1. The total depreciation for this asset now will be _______________. The depreciation amount for Year 3 will be_______________.

4. What is the difference between the journal entries for discarding or selling a fixed asset? Which option is best?

The journal entry to (discard a fixed asset or sell a fixed asset) differs from the other entry because(a sale will involve a gain or there is no receipt of cash or the asset will be fully depreciated or the disposal will involve a loss or the book value will not be zero)