On January 1, 20X1, Stern Company (A Calendar Year Corporation)

Essay

On January 1, 20X1, Stern Company (a calendar year corporation) purchased a heavy-duty machine having an invoice price of $13,000 plus transportation and installation costs of $3,000. The machine is estimated to have a 4-year useful life and a $1,000 residual value. Assuming the company uses the declining-balance method depreciation and a 150% acceleration rate, complete the following schedule (round to the nearest dollar). $$\begin{array} { | l | l | l | } \hline \text { Date } & \text { Depreciation Expense (for the year) } & \text { Book Value (at the end of the year) } \\\hline 12 / 31 / 20 X 1 & & \\\hline 12 / 31 / 20 X2 & & \\\hline 12 / 31 / 20 X3 & & \\\hline 12 / 31 / 20X 4 & & \\\hline\end{array}$$