$(22000)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2
Purchase price
Accumulated
depreciation
Annual operating
costs
$312000
Ⓒ$(99000)
$124800
$85000.
Ⓒ$(22000)
124800
411000
$512000
-0-
330000
If the old equipment is replaced now, it can be sold for $85000. Both the old equipment's remaining useful life and the new
equipment's useful life is 5 years.
The increase (decrease) in net income over the 5-year period that results from replacing the old equipment with the new equipment is
Transcribed Image Text:Purchase price Accumulated depreciation Annual operating costs $312000 Ⓒ$(99000) $124800 $85000. Ⓒ$(22000) 124800 411000 $512000 -0- 330000 If the old equipment is replaced now, it can be sold for $85000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The increase (decrease) in net income over the 5-year period that results from replacing the old equipment with the new equipment is
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