Based on the Following Information, What Is the Net Book

question 22

Multiple Choice

Based on the following information, what is the net book value of the asset on the December 31, 2021 balance sheet? $$\begin{array} { | l | r | } \hline \text { Cost } & \$ 750,000 \\\hline \text { Accumulated depreciation } & 400,000 \\\hline \text { Value in use (sum of discounted cash flows) } & 300,000 \\\hline \text { Fair value } & 200,000 \\\hline \text { Disposal costs } & 15,000 \\\hline\end{array}$$

• A)$185,000
• B)$200,000
• C)$300,000
• D)$350,000

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Definitions:

Consumer Demand

The desire of buyers for goods and services, influencing the quantity that the market can sell at a certain price.

Pricing Constraint

Limitations or conditions that affect how a product or service is priced, such as cost of production, competition, or regulatory compliance.

Potential Buyers

Individuals or entities that are considered likely prospects or leads for purchasing products or services.

Product Life Cycle

A concept that describes the stages a product goes through from its introduction to the market until it is discontinued.