Farrahs purchased equipment at the beginning of the year for $650,000 and began depreciating it over a 10-year period at $60,000 annually. The equipments salvage value was $50,000.

At the end of Year 4, Farrahs retooled its production line to increase its efficiency and incurred the following costs:

Payment for internal labor			$16,800
Materials and supplies			$21,600

What is the book value of the equipment on January 1, Year 5?

Select one:

a. 380,000

b. 638,400

c. 448,400

d. 368,400