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solve please SCHULZE TIMBER COMPANY Machine purchased 1/1/2014: Cost of machine Useful life (years) Salvage value Annual operating costs Market value at 1/1/2015 Book value
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SCHULZE TIMBER COMPANY Machine purchased 1/1/2014: Cost of machine Useful life (years) Salvage value Annual operating costs Market value at 1/1/2015 Book value at 1/1/2015 Machine purchased 1/1/2012: Cost of machine Useful life (years) Salvage value Reduction in operating costs $ 400,000 $ 90,000 $ 200,000 $ 320,000 $ 240,000 4 25% $ 224,000 Expected annual revenue Replace With New Decisiorn Opportunity cost of old machine Purchase price of the new machine Operating Expense Keep Old Total Avoidable Cost b. SCHULZE TIMBER COMPANY Income Statements 2015 2016 2017 2018 Total Revenue Depreciation expense Operating expense Net income 2015 2016 2017 2018 Total Revenue Depreciation expense Loss on disposal Net income (loss) SCHULZE TIMBER COMPANY Machine purchased 1/1/2014: Cost of machine Useful life (years) Salvage value Annual operating costs Market value at 1/1/2015 Book value at 1/1/2015 Machine purchased 1/1/2012: Cost of machine Useful life (years) Salvage value Reduction in operating costs $ 400,000 $ 90,000 $ 200,000 $ 320,000 $ 240,000 4 25% $ 224,000 Expected annual revenue Replace With New Decisiorn Opportunity cost of old machine Purchase price of the new machine Operating Expense Keep Old Total Avoidable Cost b. SCHULZE TIMBER COMPANY Income Statements 2015 2016 2017 2018 Total Revenue Depreciation expense Operating expense Net income 2015 2016 2017 2018 Total Revenue Depreciation expense Loss on disposal Net income (loss)Step by Step Solution
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