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

The net book value (NBV) of the long-term assets at current cost at the end of year 4 is $660,000. This is calculated by taking the current cost of the assets ($1,180,000) and subtracting the accumulated depreciation ($520,000).

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