A machine with a cost of $225,000 has an estimated residual value of $25,000 and an estimated operating hour of 50,000 hours is to be depreciated by the units-of-output method. For the first full year, the machine was used 10,000 hours; what is the book value of the machine by the end of the year?

Select one:

a.

$160,000

b.

$185,000

c.

$40,000

d.

Cannot be determined