The Most Important Thing to Consider When Deciding to Replace

question 25

Multiple Choice

The most important thing to consider when deciding to replace or keep equipment is

• A)salvage value of the current equipment.
• B)the estimated number of years remaining on the books.
• C)the expected variable costs of the new equipment.
• D)whether book value is higher than replacement value.

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Definitions:

Zoning Rights

Legal regulations determining how specific areas of land can be used, affecting building types, sizes, and purposes.

Community Property

In certain states, all property acquired during a marriage, except for inheritances or gifts received during the marriage by either marital partner. Each spouse has a one-half ownership interest in community property.

Joint Tenancy

The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenant or tenants.

Community Property

A legal regime in some jurisdictions under which property acquired during marriage is owned jointly by both spouses, excluding personal gifts and inheritances.