The Chester Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,090,000. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use? (Use FASB GAAP a) $32,720,000
b) $29,448,000
c) $35,446,667
d) $33,538,000

d) $33,538,000

Explanation:

Use straight line depreciation and find the annual depreciation.

= (40,900,000 - 4,090,000) / 15

= $‭2,454,000‬

In 3 years, the depreciation is;

= ‭2,454,000‬ * 3

= $‭7,362,000‬

Net book value = 40,900,000 - ‭7,362,000‬

= $‭33,538,000‬

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

d) social security number

let me know if i am correct or not, so i can edit the answer.