Answer:
$108,400
Explanation:
The computation of the net book value of the machine at the end of the second year is shown below:
But before that the accumulated depreciation would be determined
For first year, the depreciation expense is
= ($190,000 - $10,000) × 15,000 ÷ 75,000
= $36,000
For the second year, the depreciation expense is
= ($190,000 - $10,000) × 19,000 ÷ 75,000
= $45,600
Now the net book value is
= $190,000 - $36,000 - $45,600
= $108,400
