The City of San Diego Is About to Replace an Old

question 40

Multiple Choice

The City of San Diego is about to replace an old fire truck with a new vehicle in an effort to save maintenance and other operating costs. Which of the following items, all related to the transaction, would not be considered in the decision?

• A) Purchase price of the new vehicle.
• B) Purchase price of the old vehicle.
• C) Savings in operating costs as a result of the new vehicle.
• D) Proceeds from disposal of the old vehicle.
• E) Future depreciation on the new vehicle.

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