You have been hired by 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, 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	$6,000.00	$10,125.00	$8,800.00
2	3,600.00	13,500.00	6,600.00
3	2,160.00	13,500.00	7,480.00
4	1,296.00	13,500.00	6,600.00
5	444.00	3,375.00	4,400.00
6			7,040.00
7			4,840.00
8
Total	$13,500.00	$54,000.00	$45,760.00

1. Determine which depreciation method is shown in each schedule on the Patterson & Associates 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 & Associates panel, fill in the following information. Leave any cells blank that cannot be determined from the depreciation schedule.

	A	B	C
Useful life
Residual value
Asset cost
Total operating hours

Review the depreciation schedules on the Patterson & Associates 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 lower?

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