Swanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of $139,000. the machine's estimated useful life at the time of the purchase was five years, and its residual value was $9,000. The company reports on a calendar year basis.

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).

B. Which of these three methods computed in part A is most common for financial reporting puposes?

C. Assume that Swanson & Hiller sells the machine on December 31 of the fourth year for $30,500 cash. Compute the resulting gain or loss from the sale under each of the depreciation methods used in part A.

Straight Line	gain/loss?	???
200%	gain/loss?	???
150%	gain/loss?	???