A Company Purchased a Machine for $970,000

question 148

Multiple Choice

A company purchased a machine for $970,000.The machine has a useful life of 12 years and a residual value of $4,500.It is estimated that the machine could produce 1,000,000 units over its useful life.In the first year,200,000 units were produced.In the second year,production increased to 300,000 units.Using the units-of-production method,what is the book value of this asset at the end of the second year of operations?

• A)$482,750
• B)$487,250
• C)$485,000
• D)$291,000
• E)$289,650

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Definitions:

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Self-actualization

Achieving or completing one's innate talents and possibilities, considered to be an intrinsic motivation or need in everyone.

Psychodynamic Theorists

Psychologists or theorists who emphasize the role of the unconscious mind, internal conflicts, and past experiences in shaping human behavior and personality.

Freud's Assumption

A reference to Sigmund Freud's foundational beliefs that unconscious motivations and childhood experiences significantly influence human behavior and personality.