During 2015, Yvo Corp. installed a production assembly line to manufacture furniture. In 2016, 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 $ 75,000 Labor to install machine 14,000 Parts added in rearranging the assembly line to provide future benefits 40,000 Labor and overhead to rearrange the assembly line 18,000 What amount of the above expenditures should be capitalized in 2016? Multiple Choice $ 75,000 $ 89,000 $107,000 $147,000

Question

Scarlett Torres

Business

12 May, 01:31

During 2015, Yvo Corp. installed a production assembly line to manufacture furniture. In 2016, 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 $ 75,000 Labor to install machine 14,000 Parts added in rearranging the assembly line to provide future benefits 40,000 Labor and overhead to rearrange the assembly line 18,000 What amount of the above expenditures should be capitalized in 2016? Multiple Choice $ 75,000 $ 89,000 $107,000 $147,000

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Answers (1)

Know the Answer?

Trey Ferguson · Answer 1

the answer is 22,000 dollars

Explanation:

Its head math you subtract 40,000 from 75,000=35,000 dollars than you subtract 14,000 from 35,00 giving you 22,000 dollars.