A Company Purchased a Machine for $970,000

Multiple Choice

A company purchased a machine for $970,000.The machine has a useful life of 12 years and a residual value of $4,500.It is estimated that the machine could produce 1,000,000 units over its useful life.In the first year,200,000 units were produced.In the second year,production increased to 300,000 units.Using the units-of-production method,what is the book value of this asset at the end of the second year of operations?

A) $482,750
B) $487,250
C) $485,000
D) $291,000
E) $289,650