A Company Purchased a Weaving Machine for $190,000

question 116

Multiple Choice

A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a salvage value of $10,000. It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life. In the first year, 15,000 bolts were produced. In the second year, production increased to 19,000 units. Using the units-of-production method, what is the book value of the machine at the end of the second year?

• A)$108,400.
• B)$144,400.
• C)$81,600.
• D)$190,000.
• E)$180,000.

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