Please see question attached.

13. Peru Ltd. acquires a new machine. It is comprised of two different components (A and B) that are expected to be overhauled at different times. The acquisition costs of the machine are as follows: Component A: $198,000 Component B: $240,000 Component A is expected to have a useful life of 5 years and a residual value of $20,000 before the first major overhaul is required. Component B is expected to have a useful life of 7' years and a residual value of $15,000 before its rst overhaul. Peru uses straight-line depreciation for all its equipment. At the beginning of year 0, component A undergoes a major overhaul at a cost of 100,000. The work is expected to extend its life by 3 years, but the residual value will then be zero. What is the net book value of component A one year after the overhaul? a) $120,000 b} $80,000 c) $00,657 d} $40,000