On January 2, 2011, Jansing Corporation acquired a new machine with an estimated useful life offive years. The cost of the equipment was $40,000 with a residual value of $5,000.a. Prepare a complete depreciation table under the three depreciation methods listed below. Usea format similar to the illustrations in Exhibits 9–4 , 9–5 , and 9–6 . In each case, assume that afull year of depreciation was taken in 2011.1. Straight-line.2. 200 percent declining-balance. 3. 150 percent declining-balance with a switch to straight-line when it will maximize depre-ciation expense. b. Comment on significant differences or similarities that you observe among the patterns ofdepreciation expense recognized under each of these methods.

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Chapter1: Financial Statements And Business Decisions
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On January 2, 2011, Jansing Corporation acquired a new machine with an estimated useful life of
five years. The cost of the equipment was $40,000 with a residual value of $5,000.
a. Prepare a complete depreciation table under the three depreciation methods listed below. Use
a format similar to the illustrations in Exhibits 9–4 , 9–5 , and 9–6 . In each case, assume that a
full year of depreciation was taken in 2011.
1. Straight-line.
2. 200 percent declining-balance.

3. 150 percent declining-balance with a switch to straight-line when it will maximize depre-
ciation expense.

b. Comment on significant differences or similarities that you observe among the patterns of
depreciation expense recognized under each of these methods.

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