During the previous year, Yvo Corp. installed a production assembly line to manufacture furniture. In the current year, Yvo purchased a new machine and rearranged the assembly line to install this machine. The rearrangement did not increase the estimated useful life of the assembly line, but it did result in significantly more efficient production. The following expenditures were incurred in connection with this project:Machine $75,000Labor to install machine 14,000Parts added in rearranging the assembly line toprovide future benefits 40,000Labor and overhead to rearrange the assembly line 18,000What amount of the above expenditures should be capitalized in the current year? A. $147,000B. $107,000C. $89,000D. $75,000
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