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

---

Definitions:

Raw Materials

Fundamental substances employed in the creation of manufactured products.

Direct Materials

Materials that can be directly linked to the manufacturing of a particular product.

Manufacturing Overhead

Costs in manufacturing beyond direct labor and materials, including expenses like factory maintenance and equipment depreciation, essential for production but not directly traceable to specific units.

Indirect Materials

Materials used in the production process that are not directly traceable to a specific product.