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Swanson & Hiller, Inc. purchased a new machine on September 1, 2012 at a cost of $159,000. The machine's estimated useful life at the timme of the purchase was five years, and its residual value was $9,000.

a-1. Prepare a complete depreciation schedule, beginning with calendar year 2012, using the straight-line method. (Assume that the half-year convention is used).

Year	Depreciation Expense	Accumulated Depreciation	Book Value
2012
2013
2014
2015
2016
2017

a-2. Prepare a complete depreciation schedule, beginning with calendar year 2012, using the 200 percent declinging-balance method. (Assume that the half-year convention is used) (round your answer to the nearest dollar amount).

Year	Depreciation Expense	Accumulated Depreciation	Book Value
2012
2013
2014
2015
2016
2017

a-3. Prepare a complete depreciation schedule, beginning with calendar year 2012, usingthe 150 percent declining balance, switching to straight-line when that maximizes the expense. (Assume that the half-year convention is used (Round to nearest dollar amount).

Year	Depreciation Expense	Accumulated Depreciation	Book Value
2012
2013
2014
2015
2016
2017

b. Which of the three methods computed in part a is most common for financial reporting purposes?

--200 percent declining balance method

--Straight line method

--150 percent declining balance method

c. Assume that Swanson & Hiller sells the machine on December 31, 2015 for $31,500 cash. Compute the resulting gain or loss from this sale under each of the depreciation methods used in part a. (round book value calculations. Round final answer to nearest whole dollar).

Straight line
200 pecent declining balance
150 percent declinging balance

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