A Company Purchased a Weaving Machine for $190,000

question 26

Multiple Choice

A company purchased a weaving machine for $190,000.The machine has a useful life of 8 years and a residual value of $10,000.It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life.In the first year,15,000 bolts were produced.In the second year,production increased to 19,000 units.Using the units-of-production method,what is the book value of the machine at the end of the second year?

• A)$108,400.
• B)$144,400.
• C)$81,600.
• D)$190,000.
• E)$180,000.

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Definitions:

Motivated Tactician

A model of social cognition that characterises people as having multiple cognitive strategies available, which they choose among on the basis of personal goals, motives, and needs.

Role of Thought

The importance or function of cognitive processes in understanding and reacting to the environment.

Recency Effect

Refers to the tendency to remember the most recently presented information best.

Later Information

Information that is received or processed after an initial set of data or facts, which can influence or alter understanding and decision-making.