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Question 13 Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New
Question 13 Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $420000 $840000 Accumulated Depreciation 126000 -0- Remaining useful life 10 years -O- Useful life -0 10 years Annual operating costs $336000 $252000 If the old machine is replaced, it can be sold for $33600. Which of the following amounts is a sunk cost? O $336000 O $294000 O $252000 O $840000 Question 14 Oriole Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $330000 $660000 Accumulated Depreciation 99000 -0- Remaining useful life 10 years -0- Useful life 10 years Annual operating costs $264000 $198000 -0- If the old machine is replaced, it can be sold for $26400. The company uses straight-line depreciation with a zero salvage value for all of its assets. Which of the following amounts is relevant to the replacement decision? O $231000 O $99000 $330000 O $66000
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