On July 1, 2019, ABC purchased a machine for 100,000. The estimated useful life of the machine is 10 years and no salvage value is anticipated. An important component of the machine is a specialized high-speed press that will need to be replaced in five years. The cost of the press is 25,000 and is included in the 100,000 cost of the machine. ABC applies the straight-line method for all fixed tangible assets.

The book value of the machinery on December 31, 2019, is:

Select one:

a. 75,000

b. 71,250

c. 65,000

d. 90,000

e. 95,500