During year $1,$ Yvo Corp. installed a production assembly line to manufacture furniture.$$ In year $2,$ Yvo purchased a new machine and rearranged the assembly line to install this machine.$$ The rearrangement did not increase the estimated useful life of the assembly line, but it did result in significantly more efficient production.$$ The following expenditures were incurred in connection with this project:

Machine$$75,000$Labor to install machine$14,000$Parts added in rearranging the assembly line to provide future benefits$40,000$Labor and overhead to rearrange the assembly line$18,000$

What amount of the above expenditures should be capitalized in year $2?$

Question $18$ options:

$ $89,000$

$$107,000$

$$147,000$

$ $75,000$