Sutter Company Purchased a Machine on January 1, 20X1, for $16,000

question 47

Essay

Sutter Company purchased a machine on January 1, 20X1, for $16,000. The machine has an estimated useful life of 5 years and a $1,000 residual value. It is now December 31, 20X2, and Sutter is in the process of preparing financial statements. Complete the following schedule assuming declining-balance method of depreciation with a 150% acceleration rate. $$\begin{array} { | l | l | l | } \hline \text { Date } & \begin{array} { l } \text { Depreciation Expense (for the } \\\text { year) }\end{array} & \text { Book Value (end of the year) } \\\hline 12 / 31 / 20X 1 & & \\\hline 12 / 31 / 20 X 2 & & \\\hline\end{array}$$

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Definitions:

Price

The fiscal amount deemed necessary, expected, or expended in purchasing something.

Rationing Device

A method or system used to allocate scarce goods, services, or resources among competing demands.

Equilibrium

A state in a market where supply equals demand, and there is no tendency for change in the price or quantity.

Price Floor

A government or regulatory-imposed price control that sets the minimum allowable price to be charged for a particular good or service. It is aimed at protecting producers by ensuring prices do not fall below a certain level.