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Company X needs to change the motor of its car after 10 years (at the end of the 10th year) of its use. This motor

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Company X needs to change the motor of its car after 10 years (at the end of the 10th year) of its use. This motor is a significant part of the car, and its cost is measurable. The cost of new motor is equal $25,000 and the estimated annual price increase of the motor was 3%. Answer questions 911 based on the previous information: 9. The car value as an asset should be increased by: a. $18,602.35. b. $25,000. c. $33,597.90. d. $30,000 10. The car motor value as an asset should be decreased by: a. $18,602,35. b. $25,000. c. $30,000. d. $6,397.65. 11. If the car original cost equal $200,000 and has no salvage value and the company uses straight line method of deprecation, and its useful life is 20 years. What is its new value after all adjustments including deprecation? a. $125,000.00 b. $118,602.35. c. $206,397.65. d. $106,397.65. 12. To calculate the cost of removing assets we need to calculate: a. The present value of removing assets costs. b. the future value of removing assets. c. We need to calculate both present and future value of removing assets costs. d. None of the above

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