Question
In addition to the empty warehouse that can be rented out for $100,000 a year, the Jamestown corporation can also use an equipment that has
In addition to the empty warehouse that can be rented out for $100,000 a year, the Jamestown corporation can also use an equipment that has been retired from another production facility. The value of this equipment has been fully depreciated and has a book value of zero. The company has no use of this equipment but can sell it in the market for $1.5 million.
Which of the following statement is correct?
| A. | The book value of the used equipment is zero, and the warehouse is empty and already owned by the company. So Both should not be counted as part of the costs for the Jamestown Corp. | |
| B. | The company will own warehouse, and it is empty; but the used equipment can be sold for $1.5 million. So only the used equipment should be counted as part of the costs for the Jamestown Corp. | |
| C. | Both the costs of using the warehouse and the used equipment should be counted as part of the costs for the Jamestown Corp. | |
| D. | The warehouse can be rented out for $100,000 but the value of the equipment has been used to shield taxes. So only the warehouse should be counted as part of the costs for the Jamestown Corp. |
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The Financial Crisis Implications For Research And Teaching
Authors: Ted Azarmi, Wolfgang Amann
1st Edition
3319205870, 978-3319205878
