Question
Sheridan Companyis contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $232000
Sheridan Companyis contemplating the replacement of an old machine with a new one. The following information has been gathered:
| Old Machine | New Machine | |
| Price | $232000 | $440000 |
| Accumulated Depreciation | 69600 | -0- |
| Remaining useful life | 10 years | -0- |
| Useful life | -0- | 10 years |
| Annual operating costs | $185600 | $139200 |
If the old machine is replaced, it can be sold for $18000. Which of the following amounts is relevant to the replacement decision?
|
| $208000 |
|
| $42000 |
|
| $28400 |
|
| $46400 |
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IT Auditing And Application Controls For Small And Mid Sized Enterprises Revenue Expenditure Inventory Payroll And More
Authors: Jason Wood, William Brown, Harry Howe
1st Edition
1118072618, 9781118072615
