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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 four depreciation schedules that are not labeled. They are listed in the table below. One of the assets has a depreciation rate of $4.50 per hour. Year Schedule A Schedule B Schedule C Schedule D 1 $6,380.00 $8,000.00 $10,125.00 $9,000.00 10,208.00 4,800.00 13,500.00 6,750.00 3 6,124.80 2,880.00 13,500.00 7,650.00 4 3,668.50 1,728.00 13,500.00 6,750.00 3,668.50 592.00 3,375.00 4,500.00 1,850.20 7,200.00 7 4,950.00 Total $31,900.00 $18,000.00 $54,000.00 $46,800.00 Depreciation Shaded cells have feedback. 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 5-year asset class that includes light-duty trucks Asset generating greater revenues in the early years Asset producing steady revenues Asset with variable in-service time D Points: 4/4 Feedback Check My Work 1. Consider how each type of depreciation is calculated. 2. For each of the depreciation schedules shown on the Patterson Planning Corp. panel, fill in the information below. Leave any cells blank that cannot be determined from the depreciation schedule. A Useful life 12 X 5 4 3x Residual value $6,380 * $ $51,500 $ Asset cost $6,380 $20,000 $67,500 X Total operating hours Points: 8/16 Feedback DUPICUIULUI Final Questions Review the depreciation schedules on the Patterson Planning Corp. 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 $2,500 lower? The total depreciation for this asset now will be $54,500 x. The depreciation amount for Year 3 will be $51,500 x

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