Swanson & Hiller, Inc., purchased a new machine on September of the current year at a cost of $ The machine's estimated useful life at the time of the purchase was five years, and its residual value was $ The company reports on a calendar year basis.
Required:
a Prepare a complete depreciation schedule, beginning with the current year, using the straightline method. Assume that the halfyear convention is used
a Prepare a complete depreciation schedule, beginning with the current year, using the percent decliningbalance method. Assume that the halfyear convention is used
a Prepare a complete depreciation schedule, beginning with the current year, using the percent decliningbalance, switching to straightline when that maximizes the expense. Assume that the halfyear convention is used
b Which of the three methods computed in part a is most common for financial reporting purposes?
c Assume that Swanson & Hiller sells the machine on December of the fourth year for $ cash. Compute the resulting gain or loss from this sale under each of the depreciation methods used in part a
