An Old Machine That Originally Cost $9,500 Thus Far Has

question 35

Multiple Choice

An old machine that originally cost $9,500 thus far has accumulated depreciation of $1,900.The remaining useful life is four years,with no salvage value at the end of its useful life.A new machine is now available that costs $8,500,with a useful life of five years and no residual value.The old machine could be sold now for $5,900.The annual cash operating costs for the old machine are $5,000,but for the new machine they would be only $2,500.Gross revenue from the products would be $12,000 annually for either machine.The company should

• A) keep the old machine to avoid a $5,900 loss on its disposal.
• B) keep the old machine to avoid a $1,700 loss on its disposal.
• C) replace the old machine.
• D) keep the old machine to avoid an $8,500 decrease in cash.

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Definitions:

Ageism

Prejudice or discrimination against individuals or groups based on their age.

Age Roles

Socially defined expectations and behaviors considered appropriate for individuals or groups based on their age.

Ablism

Discrimination and social prejudice against people with disabilities, valuing able-bodied individuals above those with disabilities.

Baby Boomers

The demographic cohort following World War II, generally defined as individuals born from 1946 to 1964, characterized by significant population increases and distinct cultural identities.