Aaron's Paint Paid $320,000,in Cash,for a Piece of Equipment Three

Aaron's Paint paid $320,000,in cash,for a piece of equipment three years ago.Last year,the company spent $34,000 to update the equipment with the latest technology.The equipment is being depreciated using the straight-line method over seven years.The company no longer uses this equipment in its current operations and has received an offer of $175,000 from a firm that would like to purchase it.Aaron's is debating whether to sell the equipment or to expand its operations such that the equipment can be used.When evaluating the expansion option,what value,if any,should be assigned to this equipment as an initial cost of the expansion project?

A) $364,000
B) $179,000
C) $175,000
D) $187,000
E) $212,000