Question
Bradley Industries is considering replacing a machine that is presently used in its production process. Which of the following is irrelevant to the replacement decision?
Bradley Industries is considering replacing a machine that is presently used in its production process. Which of the following is irrelevant to the replacement decision?
| Old Machine | Replacement Machine | |
| Original cost | $55,000 | $46,000 |
| Remaining useful life in years | 5 | 5 |
| Current age in years | 5 | 0 |
| Book value | $33,000 | |
| Current disposal value in cash | $10,000 | |
| Future disposal value in cash (in 5 years) | $0 | $0 |
| Annual cash operating costs | $8,000 | $4,000 |
Which of the information provided in the table is irrelevant to the replacement decision?
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
7th Edition
0912503688, 978-0912503684
