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7-34 Test Bank for Managerial Accounting, Sixth Edition 149. Sala Co. is contemplating the replacement of an old machine with a new one. The following
7-34 Test Bank for Managerial Accounting, Sixth Edition 149. Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $600,000 $300,000 90,000 Accumulated Depreciation -0- -0- 10 years Remaining useful life Useful life -0- 10 years Annual operating costs $240,000 $180,600 If the old machine is replaced, it can be sold for $24,000. The net advantage (disadvantage) of replacing the old machine is a. $18,000 b. $24,000 c. $(6,000) d. $(60,000)
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