You have been hired by Patterson Planning Corp., an 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
Depreciation
1. Determine which depreciation method is shown in each schedule on the Patterson Planning Corp. 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 Asset generating greater revenues in the early years Asset with variable in-service time
2. For each of the depreciation schedules shown on the Patterson Planning Corp. 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
You have been hired by Patterson Planning Corp., an 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 |
Depreciation
1. Determine which depreciation method is shown in each schedule on the Patterson Planning Corp. 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 | |
| Asset generating greater revenues in the early years | |
| Asset with variable in-service time |
2. For each of the depreciation schedules shown on the Patterson Planning Corp. 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 |
