A couple is considering what project they should do next to improve the value of their house. Based on the table above, which of
the following projects should they pick?
A. Modernize electrical outlets.
B. Enclose back porch
C. Landscape front yard
D. Replace carpet with hardwood floors.
E. Renovate kitchen
A. Modernize electrical outlets.
B. Enclose back porch
C. Landscape front yard
D. Replace carpet with hardwood floors.
E. Renovate kitchen
1 answer:
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Answer:
$48,175
Explanation:
Given:
Cost of the weaving machine = $332,970
Useful life = 8 year or 767,000 bolts production
Residual value = $18,500
Number of bolts produced in the first year = 113,500
Number of bolts produced in the second year = 117,500
Now,
Using the units-of-production method of depreciation
Rate of depreciation =
=
= 0.41
Therefore,
Depreciation for the second year
= Rate of depreciation × Number of bolts produced in the second year
= 0.41 × 117,500
= $48,175