QJ Samantha Jorgenson

Board Member, Accounting &$.$ Finance

Fri, $8$:$00$ am

Dear Dude,

I've been reviewing the recent upgrade to our manufacturing facility, which totaled $$178,655.$ From my understanding, this investment is intended to keep our plant

up$-$to$-$date for the next $10$ years, after which we will likely consider another overhaul of our production equipment. I estimate that we will be able to salvage this

equipment for $$17,866,$ which is $10\%$ of the original cost.

So$,$ in the shorter term, my question is what would be the book value of this purchase after its first year of use? You can exclude all other plant and equipment and

follow generally accepted $($FASB$)$ accounting principles.

Best,

Sam

#$136.$

Samantha Jorgenson

Board Member, Accounting & Finance $|$ Andrews Corporation

$$164,363$

$$162,576$

$$151,857$

$$144,711$