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Required information

$[$The following information applies to the questions displayed below.$]$

Each of the following situations is Independent:

Asset Replacement An uninsured boat costing $$91,800$ was wrecked the first day it was used. It can be elther sold as$-$ls for $$9,180$

cash and replaced with a similar boat costing $$94,700$ or rebult for $$76,800$ and be brand new as far as operating characteristics and

looks are concerned.

Required:

What is the difference in cost between the two options?

Difference in cost

Based on financlal considerations, what should the company do$?$

Sell as$-$Is for $$9,180$ cash and replace with a similar boat costing $$94,700.$

Rebulld for $$76,800.$