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Ighl- Instructions a. Prepare a complete depreciation schedule, beginning with calendar year 2012, under each methods listed below (assume that the half-year convention is used): 1. Straight-line. 2. 200 percent declining-balance. 1. 150 percent declining-balance, switching to straight-line when that man expense. hing to straight-line when that maximizes the b. Which of the three methods computed in part a is me poses? Explain. com part a is most common for financial reporting pure sume that Swanson & Hiller sells the machine on December 31, 2015, for- Compute the resulting gain or loss from this sale under each of the danneciation me in part a. Does the gam or loss reported in the comnanule income statement have sale under each of the depreciation methods us cash effects? Explain. company's income statement have any all 1, 2015, for $29,000 cash. 09-3. Hills Hardware nunchaca Swanson & Hiller, Inc., purchased a new machine on September 1, 2012 at a cost of $108,000. The machine's estimated useful life at the time of the purchase was five years, and its residual value was $8,000. Instructions a. Prepare a complete depreciation schedule, beginning with calendar year 2012, under each methods listed below (assume that the half-year convention is used): 1. Straight-line. 2. 200 percent declining-balance. 3. 150 percent declining-balance, switching to straight-line when that maxi expense. Which of the three methods computed in part a is most common for financial repo -line when that maximizes the poses? Explain. e. financial reporting pur- Assume that Swanson & Hiller sells the machine on December 31, 2015, tors Compute the resulting gain or loss from this sale under each of the depreciation 1 in part a. Does the gain or loss reported in the company's income statement hay cash effects? Explain. 1, 2015, for $29,000 cash. preciation methods used statement have any direct 9-3. Hills Hardware purchased

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