The disposal value of old equipment is relevant.
举一反三
- ____________________ 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
- Gainor loss on disposal of equipment is relevant in deciding whether to keep orreplace 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
- Book value is defined as: A: a. disposal value B: b. disposal value less accumulated depreciation C: c. cost less accumulated depreciation D: d. disposal value less original cost
- Whenmaking a decision to replace some old equipment with new, the depreciationtaken on both the old or new equipment is irrelevant information.