Norwood, Inc. Norwood, Inc. Purchased a Crane at a Cost of $80,000

question 166

Multiple Choice

Norwood, Inc.

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 eight years, or 12,500 hours of operation. The crane was purchased on January 1, 2017, and was used 2,700 hours in 2017 and 2,600 hours in 2018.

-Refer to the information for Norwood,Inc.
If Norwood uses the straight-line method,what is the book value at December 31,2019?

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

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Definitions:

Quantity Of Labor

The total hours worked or the number of workers employed by a business or within an economy.

Contracting Services

The process of engaging an external company to provide services that could be performed by in-house staff.

Signaling View

An economic theory that suggests that education serves as a signal to employers about a potential employee's abilities.

Surplus Of Labor

An excess supply of labor in the job market, where the number of workers seeking employment exceeds the number of job vacancies.