Which One of the Following Is Most Relevant to an Equipment-Replacement

question 41

Multiple Choice

Which one of the following is most relevant to an equipment-replacement decision (assume no tax effects) used in a trade or business?

• A) Original cost of the old equipment.
• B) Current disposal (salvage) value of the old equipment.
• C) Gain or loss on the disposal of the old equipment.
• D) Original cost less accumulated depreciation of the old equipment.
• E) A lump-sum write-off amount from the disposal of the old equipment.

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