Dinkins Inc

question 46

Multiple Choice

Dinkins Inc.is considering disposing of a machine with a book value of $50,000 and an estimated remaining life of five years.The old machine can be sold for $15,000.A new machine with a purchase price of $150,000 is being considered as a replacement.It will have a useful life of five years and no residual value.It is estimated that variable manufacturing costs will be reduced from $70,000 to $45,000 if the new machine is purchased.The net differential increase or decrease in cost for the entire five years for the new equipment is:

• A) $10,000 increase.
• B) $25,000 decrease.
• C) $10,000 decrease.
• D) $25,000 increase.

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Definitions:

Neurologic Disorder

A disorder affecting the nervous system, including the brain, spinal cord, and nerves, leading to a range of symptoms.

Cerebral Palsy

A group of permanent movement disorders that appear in early childhood, affecting muscle tone, posture, and movement.

Fear Strangers

An anxiety or fear reaction seen mostly in infants and young children when exposed to unfamiliar people.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, a critical developmental milestone in infancy.