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Concord Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Old Machine
Concord Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Old Machine New Machine $230000 $460000 69000 10 years -0- 10 years $185000 $138000 Remaining useful life -0- Useful life Annual operating costs If the old machine is replaced, it can be sold for $18400. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is O $18500 O $(4600) O $(46000) $28400
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