A Machine That Was Purchased on January 1 for $60,000

question 73

Multiple Choice

A machine that was purchased on January 1 for $60,000 has an estimated salvage value of $12,000.If the machine's depreciation rate is 20%, its annual depreciation is

• A)$12,000.
• B)$48,000.
• C)$9,600.
• D)$14,400.

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Definitions:

Excess Demand

A situation in which the quantity demanded of a good exceeds the quantity supplied at the existing price, often leading to a rise in price.

Supply Functions

Mathematical expressions that relate the quantity of a good that producers are willing to sell to the price of the good and other factors.

Demand Functions

Mathematical representations that describe the relationship between the quantity demanded of a good and its determinants like price, income, and preferences.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity.