Use the information below to answer the following question(s).
The following data are available for a foundry operation started as a new company four years ago when the construction cost index was 125:
* = "of long-term assets at historical cost"
-What is the net book value (NBV )of the long-term assets at current cost at the end of year 4?
A) $660,000
B) $800,000
C) $960,000
D) $1,180,000
E) $1,760,000

Question

Use the information below to answer the following question(s).
The following data are available for a foundry operation started as a new company four years ago when the construction cost index was 125:
  * = "of long-term assets at historical cost"
-What is the net book value (NBV )of the long-term assets at current cost at the end of year 4?
A) $660,000 
B) $800,000 
C) $960,000 
D) $1,180,000 
E) $1,760,000

Quizplus · Accepted Answer

1,100,000 × 150/125 = 1,320,000
1,320,000 × 4/8 = 660,000

Use the Information Below to Answer the Following Question(s)