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 four depreciation schedules that are not labeled. They are listed in the table below. One of the assets has a depreciation rate of $4.40 per hour.

Year	Schedule A	Schedule B	Schedule C	Schedule D
1	$6,320.00	$6,000.00	$10,125.00	$8,800.00
2	10,112.00	3,600.00	13,500.00	6,600.00
3	6,067.20	2,160.00	13,500.00	7,480.00
4	3,634.00	1,296.00	13,500.00	6,600.00
5	3,634.00	444.00	3,375.00	4,400.00
6	1,832.80			7,040.00
7				4,840.00
8
Total	$31,600.00	$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 generating greater revenues in the early years	?
5-year asset class that includes light-duty trucks	?
Asset with variable in-service time	?
Asset producing steady revenues

2. For each of the depreciation schedules shown on the Patterson & Associates panel, fill in the information below. Leave any cells blank that cannot be determined from the depreciation schedule.

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

Review the depreciation schedules on the Patterson & Associates panel, then answer the questions below.

1. How would you adjust Schedule C 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 .

2. You note in the accounting records that the asset in Schedule A was sold on December 31 of Year 4 for $3,000. Was there a gain or a loss on the sale?

There was because .

3. What is the difference between the journal entries for discarding or selling a fixed asset?

The journal entry to differs from the other entry because .

4. Complete the following sentences about depreciation.

(A) When a fixed asset is fully depreciated it is if . (B) The balance of the Accumulated Depreciation account represents . (C) Depreciation measures .