Brandon Ltd purchased a new machine on 1 October 2015 at a cost of $228,000. The entity estimated that the machine has a residual value of $28,000. The machine is expected to be used for 40,000 working hours during its 10-year life. Assume a 31 December year-end.

What is the carrying value of the machine at the end of 2016 if the company uses the units of production method, assuming the machine was used 1,800 hours in 2015 and 8,000 in 2016?

a.$172,140.

b.$49,000.

c.$55,860.

d.$179,000.

e.None of the above is correct.