New machinery and equipment was purchased during the year for a total cost of $$680,000.$ Depreciation expense for the year on machinery and

equipment was $$220,000.$ No machinery or equipment was sold or otherwise disposed of during the year. During the year, the net book value of

machinery and equipment:

Multiple Choice

decreased by $$460,000.$

increased by $$680,000.$

decreased by $$220,000.$

increased by $$460,000.$