Question 24 Fusters Inc. provides audited financial statements to its creditors and is required to maintain certain covenants based on its debt to equity ratio and return on assets. In addition, management of Fusters receives a bonus partially based on revenues for the year. Information related to Fusters, Inc., follows. 1. Depreciation expense on the building for the year was $45,000. Because the building was increasing in value during the year, the controller decided not to record any depreciation expense in the current year. 2. New legislation was discussed by the government that would require new pollution control technology for companies such as Fusters. Prior to this, Pusters had been complying with all current requirements and otherwise believed that it was acting in an environmentally responsible manner. In anticipation of this legislation being passed next year, Fusters expects it will need to upgrade its equipment and has booked the following entry: Equipment 121,000 Accounts Payable 121,000 3. During the year, the company sold certain equipment for $285,000, recognizing a gain of $45,000. Because the controller believed that new equipment would be needed in the near future, the controller decided to defer the gain and depreciate it over the life of the new equipment that would soon be purchased An order for $61,500 was received from a customer on December 29, for products on hand. This order was shipped f... shipping point on January 9, 2021. The company made the following entry for 2020: Accounts Receivable Sales Revenue 61,500 61,500