Ready Products Incorporated operates two divisions, each with its own manufacturing facility. The accounting system reports the following data for 2022: HEALTH CARE PRODUCTS DIVISION Income Statement For the Year Ended December 31, 2022 Revenues Operating costs Operating income COSMETICS DIVISION $ 1,200 770 $ 430 Income Statement For the Year Ended December 31, 2022 Revenues Operating costs Operating income $ 960 460 $ 500 Ready estimates the useful life of each manufacturing facility to be 21 years. As of the end of 2022, the plant for the health care division is 4 years old, while the manufacturing plant for the cosmetics division is 6 years old. Each plant had the same cost at the time of purchase, and both have useful lives of 21 years with no salvage value. The company uses straight-line depreciation and the depreciation charge is $70,000 per year for each division. The manufacturing facility is the only long-lived asset of either division. Current assets are $312,000 in each division. An index of construction costs, replacement costs, and liquidation values for the manufacturing facilities for the period that Ready has been operating is as follows: Year Cost Index Liquidation Value 2016 80 Replacement Cost $ 1,000,000 Health Care Cosmetics $ 800,000 $ 800,000 2017 82 1,000,000 800,000 800,000 2018 84 1,100,000 600,000 600,000 2019 89 1,150,000 600,000 700,000 2020 94 1,200,000 700,000 800,000 2021 96 1,250,000 700,000 800,000 2022 100 1,300,000 600,000 900,000