Question
Ida Enterprises is considering replacing a machine that is presently used in its production process. The following information is available: Old Machine Replacement Machine Original
Ida Enterprises is considering replacing a machine that is presently used in its production process. The following information is available:
| Old Machine | Replacement Machine | |
| Original cost | $60,000 | $35,000 |
| Remaining useful life in years | 5 | 5 |
| Current age in years | 5 | 0 |
| Book value | $25,000 | |
| Current disposal value in cash | $8,000 | |
| Future disposal value in cash (in 5 years) | $0 | $0 |
| Annual cash operating costs | $7,000 | $4,000 |
Which of the information provided in the table is irrelevant to the replacement decision?
A.The annual operating cost of the old machine
B.The current disposal value of the old machine
C.The original cost of the old machine
D.Both A and C
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College Accounting A Practical Approach
Authors: Jeffrey Slater, Debra Good
13th Canadian edition
134616316, 134166698, 9780134632407 , 978-0134166698
