Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer the 4 following questions: Waterway Industries is considering the replacement of a piece of equipment with a newer model. The following data has been
Answer the 4 following questions:
Waterway Industries is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $250000 $384000 Accumulated depreciation 110000 -0- Annual operating costs 306000 244000 If the old equipment is replaced now, it can be sold for $55000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. Which of the following amounts is irrelevant to the replacement decision? $329000 O $140000 $55000 O $384000 Bramble Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $245000 $410000 Accumulated depreciation 90000 -0- Annual operating costs 310000 260000 If the old equipment is replaced now, it can be sold for $90000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. What is the cost of the new equipment? $165000 $65000 $410000 O $320000 Crane Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment $376000 Purchase price $260000 Accumulated depreciation 110000 -0- Annual operating costs 310000 241000 If the old equipment is replaced now, it can be sold for $61000. Both the old equipment's remaining useful life and the new equipment's useful life is 4 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is O $110000 $(50000) O $61000 O $(39000) Crane Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $330000 $ 610000 Accumulated Depreciation 100000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $ 260000 $ 194600 If the old machine is replaced, it can be sold for $ 24000. The net advantage disadvantage) of replacing the old machine is O $26000 O $(6100) O $ 68000 $(61000)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started