Brixton Textiles is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows: Existing Equipment Cost Operating expenses* Salvage value Market value Book value 4:42 Depreciation Remaining useful life k Replacement Equipment $258,000 Cost $289,000 135,000 Operating expenses 51,100 10,600 Salvage value 174,000 Useful life 10,600 5 years 145,000 125,000 5 years *The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment. Required Based on this information, should the old machine be replaced? vant costs of operating the new equipment are higher by the old equipment should be kept

Brixton Textiles is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows: Existing Equipment Cost Operating expenses* Salvage value Market value Book value 4:42 Depreciation Remaining useful life k Replacement Equipment $258,000 Cost $289,000 135,000 Operating expenses 51,100 10,600 Salvage value 174,000 Useful life 10,600 5 years 145,000 125,000 5 years *The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment. Required Based on this information, should the old machine be replaced? vant costs of operating the new equipment are higher by the old equipment should be kept

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter9: Depreciation (deprec)

Section: Chapter Questions

Problem 1R: Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an...

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camdenccinstructure.com/courses/3788/asSignments/35976 Waterway Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine $900000 $450000 Price 135000 Accumulated Depreciation -0- 10 years 0- Remaining useful life -0- 10 years Useful life Annual operating costs $360000 $270000 If the old machine is replaced, it can be sold for $36000. The company uses straight-line depreciation with a zero salvage value for all of its assets Which of the following amounts is relevant to the replacement decision? O $135000 O$90000 O$315000 $450000
Please help me. Thankyou.
Delaney Company is considering replacing equipment that originally cost $548,000 and has accumulated depreciation of $383,600 to date. A new machine will cost $778,000. The sunk cost in this situation is a. $131,520 b. $613,600 c. $164,400 d. $548,000
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Victor Mineli, the new controller of Carla Vista Co., has reviewed the expected useful lives and salvage values of selected depreciable asset categories at the beginning of 2021. Here are his findings: Category of Asset Date Historical Accum. Useful Life (Years) Original Proposed Original Proposed Salvage Value Acquired Cost Deprec. $829,000 $369,000 Building 1/1/2003 43 $50,000 $40,000 Machinery 1/1/2011 245,000 92,000 25 20 15,000 9,000 All assets were placed into service on their acquisition dates and are depreciated by the straight-line method. Carla Vista Co. uses a calendar year in preparing annual financial statements. Note that "Proposed" useful life is a revised estimate of total life, not remaining life. Enter all answers in whole dollar amounts without a $. If rounding is necessary, round to the nearest whole dollar (e.g., XXX). a. Using the original values, how much annual depreciation expense did Carla Vista recognize for the Building in 2020? $ b. Assume that management…
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