Gainor loss on disposal of equipment is relevant in deciding whether to keep orreplace equipment.
举一反三
- Depreciationon new equipment is relevant in deciding whether to keep or replace equipment.
- R company sold old equipment for $25 000. The equipment had a cost of $50 000 and accumulated depreciation of $30 000. The entry to record the sale of the equipment would include a ( ). A: loss on disposal of $25 000 B: gain on disposal of $25 000 C: loss on disposal of $5 000 D: gain on disposal of $5 000
- ____________________ is relevant in a decision to replace equipment. A: a. Cost of old equipment B: b. Book value of old equipment C: c. Depreciation accrued on old equipment D: d. Future maintenance costs of old equipment
- The disposal value of old equipment is relevant.
- Unavoidablecosts are never relevant in deciding whether to eliminate a product or department.