Cost less salvage value = 970,000 - 4500 = 965,500
Capacity of machine = 1,000,000 units.
units consumed at the end of second year = 200,000 + 300,000 = 500,000 units.
Capacity remaining = 1,000,000 - 500,000 = 500,000 units
Book value at end of second year = (500,000/1,000,000)*965,500 + 4500
= $487,250
Break down the words into an equation:
(x+7)/(x+3) + (x-4)/3
18 is the right answer. The two fractions must be porportional
