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On June 1, 2023, Candy Company replaced an industrial furnace with a more efficient furnace. The following information is available: Purchase price of the new
- On June 1, 2023, Candy Company replaced an industrial furnace with a more efficient furnace. The following information is available:
Purchase price of the new furnace $150,000
Book(carrying)value of old furnace 10,000
Fair value of old furnace 4,000
Installation cost of new furnace 20,000
The old furnace was sold for $4,000. What amount should Candy capitalize as the cost of the new furnace?
- $150,000
- $160,000
- $164,000
- $170,000
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