Norwood, Inc

question 102

Multiple Choice

Norwood, Inc.purchased a crane at a cost of $80,000.The crane has an estimated residual value of $5,000 and an estimated life of 8 years, or 12,500 hours of operation.The crane was purchased on January 1, 2016 and was used 2,700 hours in 2016 and 2,600 hours in 2017.
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-Refer to the information about Norwood, Inc. ​
If Norwood uses the straight-line method, what is the book value at December 31, 2018?

• A) $46,875
• B) $51,875
• C) $62,500
• D) $67,500

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Definitions:

Gulf Coast

The coastline along the Gulf of Mexico in the United States, known for its distinct culture, ecosystems, and economic contributions.

Upper Mantle

The layer of the Earth located beneath the crust and above the lower mantle, extending from depths of about 35 to 410 kilometers.

Continental Crust

The thick part of the Earth's crust that forms the large landmasses. It is generally older and more complex than oceanic crust.

Basalt

A fine-grained, dark-colored mafic igneous rock, with or without vesicles and phenocrysts of pyroxene, olivine, or feldspar.