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Granfield Company has a piece of manufacturing equipment with a book value of $46,500 and a remaining useful life of four years. At the end
Granfield Company has a piece of manufacturing equipment with a book value of $46,500 and a remaining useful life of four years. At the end of the four years the equipment will have a zero-salvage value. can purchase new equipment for $159,000 and receive $27,200 in return for trading in its current equipment. The current equipment has variable manufacturing costs of $52,000 per year. The new equipme reduce variable manufacturing costs by $25,500 per year over its four-year life. The total increase or decrease in income by replacing the current equipment with the new equipment is: Multiple Choice O $102,000 increase $16,700 decrease $69,550 increase $29,800 increase $29,800 decrease Meitiale Choice 5102,000 metease $16,700 decrease 369.550 inctese 529400 increase 529,800 decrease
Granfield Company has a piece of manufacturing equipment with a book value of $46,500 and a remaining useful life of four years. At the end of the four years the equipment will have a zero-salvage value. can purchase new equipment for $159,000 and receive $27,200 in return for trading in its current equipment. The current equipment has variable manufacturing costs of $52,000 per year. The new equipme reduce variable manufacturing costs by $25,500 per year over its four-year life. The total increase or decrease in income by replacing the current equipment with the new equipment is: Multiple Choice O $102,000 increase $16,700 decrease $69,550 increase $29,800 increase $29,800 decrease
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