Luther Soaps Purchased a Machine on January 1, 2010, for $18,000

question 22

Multiple Choice

Luther Soaps purchased a machine on January 1, 2010, for $18,000 cash. The machine has an estimated useful life of four years and a salvage value of $4,700. Luther uses the double-declining-balance method of depreciation for all its assets. What will be the machine's book value as of December 31, 2011?

• A) $5,100
• B) $4,700
• C) $4,500
• D) $4,300

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing and able to supply.

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Unfavorable or destructive atmospheric conditions, including storms, heavy rain, snowfall, hurricanes, or extreme temperatures.

Production Tax

A tax imposed by governments on the production, sale, or use of goods and services within their jurisdiction.