Inverness Company Is Considering the Replacement of a Machine That

question 91

Multiple Choice

Inverness Company is considering the replacement of a machine that is presently used in production.The following data are available:
$\begin{array}{lll}&\text { Old Machine }&\text { NEW Machine }\\\text { Original cost } & \$ 57,000 & \$ 35,000 \\\text { Useful life in years } & 17 & 5 \\\text { Current age in years } & 12 & 0 \\\text { Book value } & \$ 39,000 & -\\\text { Disposal value now } & \$ 8,000 & - \\\text { Disposal value in } 5 \text { years } & 0 & 0 \\\text { Annual cash operating costs } & \$ 7,000 & \$ 4,000\end{array}$
Adding all five years together,what is the difference in total relevant costs between the old machine and the new machine?

• A) $12,000
• B) $15,000
• C) $22,000
• D) $37,000

Understand the legal and ethical considerations in debt collection practices.

Identify federal laws related to credit and consumer protection.

Analyze situations for potential violations of consumer credit protection laws.

Distinguish between legal and illegal practices in debt collection.

---

Definitions:

Contractual Relationship

A legally binding agreement between parties that outlines the terms and conditions of their association, duties, rights, and responsibilities.

Business Relationship

Business Relationship pertains to interactions and engagements between two or more businesses or between businesses and customers, often defined by contracts or transactions.

Invasion of Privacy

A violation or intrusion into an individual's personal life or affairs without consent, which can be subject to legal penalties.

Advertisement

Public communication in various media forms designed to promote or sell a product, service, or idea.