Question
New Saw Old Saw Original Cost $10,000 $7,000 Accumulated Depreciation Not yet acquired $3,000 Book Value Not yet acquired $5,000 Current Disposal Value Not yet
|
| New Saw | Old Saw |
| Original Cost | $10,000 | $7,000 |
| Accumulated Depreciation | Not yet acquired | $3,000 |
| Book Value | Not yet acquired | $5,000 |
| Current Disposal Value | Not yet acquired | $3,000 |
| Annual Operating Cost | $500 | $1,000 |
| Useful Life | 4 years | 7 years |
| Current Age | 0 years | 3 years |
| Remaining Useful Life | 4 years | 4 years |
| Terminal Disposal Value (in 4 years) | $3,000 | $500 |
Should SixthZ purchase the new saw?
Group of answer choices
No, because it would lose $6,500 by purchasing the new saw
No, because it would lose $2,500 by purchasing the new saw
No, because it would lose $4,500 by purchasing the new saw
No, because it would lose $8,000 by purchasing the new saw
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Fia Foundations Of Financial Accounting Ffa Interactive Text
Authors: BPP Learning Media
1st Edition
1509724176, 978-1509724178
