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 year 4 operating income using year-4 current cost amortization?
A) $(126,300)
B) $176,200
C) $73,700
D) $18,700
E) $148,700

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 year 4 operating income using year-4 current cost amortization?
A) $(126,300) 
B) $176,200 
C) $73,700 
D) $18,700 
E) $148,700

Quizplus · Accepted Answer

176,200 + ($1,100,000/8) - $165,000 = $148,700

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