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.