____________________ 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
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
举一反三
- Whenmaking a decision to replace some old equipment with new, the depreciationtaken on both the old or new equipment is irrelevant information.
- The disposal value of old equipment is relevant.
- The following normal balances appear on the adjusted trial balance of Portland Company: Equipment ..........................................................$70,000Accumulated depreciation, equipment ................. 18,000Depreciation expense, equipment .........................6,000The book value of the equipment is A: $64,000 B: $46,000 C: $52,000 D: $34,000
- 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
- Depreciationon new equipment is relevant in deciding whether to keep or replace equipment.