Starling Co

question 143

Multiple Choice

Starling Co. is considering disposing of a machine with a book value of $12,500 and estimated remaining life of five years. The old machine can be sold for $1,500. A new high-speed machine can be purchased at a cost of $25,000. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $26,000 to $23,500 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n)

• A)decrease of $11,000
• B)decrease of $15,000
• C)increase of $11,000
• D)increase of $15,000

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Definitions:

State of Incongruence

A condition where there is a discrepancy between an individual's self-image and their actual experiences or attributes, often leading to internal conflict and distress.

Humanistic

An approach in psychology that emphasizes empathy and stresses the good in human behavior, focusing on the potential for self-growth.

Psychodynamic

A psychological approach that emphasizes the study of the psychological forces underlying human behavior, feelings, and emotions, and how they might relate to early experience.

Biological

Pertaining to the processes and phenomena of living organisms, or in a broader sense, related to the life sciences.