A Company Purchased a Weaving Machine for $190,000

question 211

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. Using the units-of-production method, what is the book value of the machine at the end of the first year?

• A)$36,000.
• B)$38,000.
• C)$144,000.
• D)$152,000.
• E)$154,000.

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Definitions:

Credit

A financial term that refers either to the ability to borrow money or the act of providing goods or services with the expectation of future payment.

Debit Card

A card that immediately takes funds from a user's checking account to cover the cost of a purchase.

Power-Saving Mode

A feature in electronic devices intended to reduce energy consumption by lowering power use or shutting down non-essential components when not actively used.

Hard Drive

A storage device used to save software, documents, and other digital content.