Calculator Print Item Mastery Problem: Long-Term Assets: Fixed and Intangible Patterson and Associates Depreciation Final Questions Patterson and Associates You have been hired by Patterson & Asociates a small events planning company that recently had a fe in which some of the accounting records were damaged In reviewing the date records you find three decreciation schedules that are not labeled They are listed in the following table One of the assets has a depreciation rate of $450 per hour Year Schedule A Schedule Schedule C 59 000 00 58.00000 4.80000 2.50000 1.728.00 592.00 $10,12500 13,50000 13.500 00 13.50000 3,375.00 5.750.00 7.650 00 5.750.00 4,500.00 7 200 00 4.950 00 Total $18,000.00 $54,000.00 $46,800 00 2 For each of the depreciation schedules shown on the Patterson & Associates panell in the following information Leave any cells blank that cannot be determined from the depreciation schedule Useful de Residual value Asset cost Total operating hours Patterson and Associates Depreciation Final Questions Final Questions Review the depreciation schedules on the Patterson & Associates panel, then answer the following questions 1. How would you adjust Schedule B 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 $3,000 higher? The total depreciation for this asset now will be $ The depreciation amount for Year 3 will be $ 2 What is the difference between the joumal entries for discarding or selling a foxed asset? The journal entry to differs from the other entry because 3. Complete the following sentences about depreciation B) The balance of the Accumulated Depreciation (A) When a foxed asset is fully deprecated it is account represents (C) Depreciation measures The journal entry to differs fro discard a fixed asset 3. Complete the follo epreciation. sell a fixed asset (A) When a fixed as xed asset? because disposal will involve a loss there is no receipt of cash the book value will not be zero a sale will involve a gain the asset will be fully depreciated ntences about depreciation. Aly depreciated it is sold removed from the accounts kept in the ledger discarded (B) The it is replaced by a newer model it has residual value it is no longer useful it has not been removed from service e the following sentences about depreciation. a fixed asset is fully depreciated it is epresents the equivalent of lease payments on a fixed asset periodic recording of the cost of fixed assets as an expense money set aside for asset replacement the total amount that has been depreciated 3. Complete the following sentences about depreciation. (A) When a fixed asset is fully depreciated it is account represents the expected service life of a fixed asset the amount of wear and tear on a fixed asset during its useful life the transfer of the cost of a fixed asset to expense the gradual decrease in market value of a fixed asset