Dragoo Building Inc

question 123

Multiple Choice

Dragoo Building Inc.has a crane with a book value of $240,000 and a four-year remaining life.A new crane is available at a cost of $615,000.Dragoo can also receive $48,000 for trading in the old pump.The new crane will reduce variable costs by $145,000 per year over its four-year life.The total impact to Dragoo over the crane's four-year life is:

• A)Increase of $13,000.
• B)Increase of $23,000.
• C)Decrease of $13,000.
• D)Decrease of $615,000.
• E)Decrease of $48,000.

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Definitions:

Conscious Processes

Mental activities within an individual's awareness, allowing for perception, thinking, and direct control over actions.

Normal Adults

Adults who exhibit typical or average psychological development and functioning according to standardized norms.

Individual Differences

Variations among individuals in their qualities, abilities, and characteristics, making each person unique.

Correctional Institutions

Facilities designed to detain individuals accused or convicted of crimes, with the goal of rehabilitation and ensuring public safety.