Chung Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected:
Old Equipment New Equipment
Purchase price $225,000 $375,000
Accumulated depreciation 90,000 - 0 -
Annual operating costs 300,000 240,000
If the old equipment is replaced now, it can be sold for $60,000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years.
Which of the following amounts is irrelevant to the replacement decision?
a) $60,000
b) $375,000
c) $135,000
d) $315,000
c) $135,000
You might also like to view...
Landrum-Griffin is officially known as the Labor-Management Reporting and Disclosure Act
Indicate whether the statement is true or false
Which of the following is true regarding ABF Freight System, Inc v. NLRB?? A) ?Manso's discharge is justified and lawful Manso failed to act upon his tardiness despite warnings by three supervisors regarding top management retaliation
B) Nothwithstanding Manso's dishonesty, the National Labor Relations Board ordered Manso's former employer to reinstate him with back pay.? C) Manso's discharge was deemed lawful as he presented false testimony in a formal proceeding, which is intolerable.? D) The Supreme Court assumed that the Board did abuse its discretion in ordering reinstatement even though Manso gave ABF a false reason for being late to work.