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:

Cohabitation Rates

The statistical measure of the number of couples living together without being legally married.

Québec

A province in eastern Canada, known for its French heritage, language, and distinct culture.

Religious Teachings

Doctrines or moral guidelines imparted by religious institutions or texts, shaping beliefs, values, and practices among followers.

Cohabitation

Cohabitation is the arrangement where two individuals who are not married live together in an intimate relationship, often sharing a common living area.