Swanson & Hiller, Incorporated, purchased a new machine on September $1$ of the current year at a cost of $$169,000.$ The machine$$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.

Required:

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 the three methods computed in part a is most common for financial reporting purposes?

c$.$ Assume that Swanson & Hiller sells the machine on December $31$ of the fourth year for $$32,000$ cash. Compute the resulting gain or loss from this sale under each of the depreciation methods used in part a$.$Complete this question by entering your answers in the tabs below.

Req A$1$Req A$2$Req A$3$Req BReq C

Prepare a complete depreciation schedule, beginning with the current year, using the straight$-$line method. $($Assume that the half$-$year convention is used$).$

Year Depreciation Expense Accumulated Depreciation Book Value

$1$

$2$

$3$

$4$

$5$

$6$