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Home Q & A Board Other Fields Homework Help Business Accounting
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Kwami Kwami
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7 years ago
The managers at Rings Manufacturing Company are considering replacing the molding machine in the factory. The following information is provided:
       Old           New         
   Cost   $110,000   $90,000
   Estimated useful life   12 years    8 years
   Estimate salvage value   $    3,000   $  5,000
   Current age   4 years   --
   Estimated current fair value   $    5,000   --
   Annual operating costs   $ 20,000   $10,000
What is the total relevant cost for the new equipment?
A) $  90,000.
B) $165,000.
C) $  80,000.
D) $160,000.
Textbook 
Survey of Accounting: Making Sense of Business

Survey of Accounting: Making Sense of Business


Edition: 1st
Author:
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suryoyosuryoyo
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7 years ago
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Kwami Author
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#2
7 years ago
This really helped
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#3
7 years ago
Alright!
Thumbs up me, please!
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