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Sunland Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Purchase price Accumulated depreciation
Sunland Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Purchase price Accumulated depreciation Annual operating costs Old Equipment $245000 O $68000 O $102000 O $(34000) O $(73000) 102000 318000 New Equipment $390000 -0- 246000 If the old equipment is replaced now, it can be sold for $68000. Both the old equipment's remaining useful life and the new equipment's useful life is 4 years. Both assets have a $0 end-of-life salvage value. The net advantage (disadvantage) of replacing the old equipment with the new equipment is
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