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:
* = long-term assets at historical cost
-What is the 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:
  * = long-term assets at historical cost
-What is the 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

The NBV of the long-term assets at current cost at the end of year 4 is $660,000. This is calculated by taking the original cost of the assets ($1,000,000) and subtracting the accumulated depreciation ($340,000).

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