Question

Please find answer for red "X" areas

Mastery Problem: Long-Term Assets: Fixed and Intangible Patterson Planning Corp., 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 $4.30 per hour. Year Schedule A Schedule B Schedule i $12,000 $10,125 $8,600 7,200 13,500 6,450 4,320 13,500 7,310 4 2,592 13,500 6,450 3,375 4,300 6,880 888 4,730 Total $27,000 $54,000 $44,720 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 with variable in-service time Asset generating greater revenues in the early years

Answer 1

1. Schedule A- 40% WDV method

B- SLM Method

C- at the rate of 4.30 per hour

2. useful life for sch C 7 years