Question 8 Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $260000 $520000 Accumulated Depreciation 78000 -0- Remaining useful life 10 years -0- 10 years Useful life -0- Annual operating costs $208000 $156000 If the old machine is replaced, it can be sold for $20800. 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 $260000 O $78000 O $52000 O $182000 Click if you would like to Show Work for this question: Open Show Work

Question 8 Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $260000 $520000 Accumulated Depreciation 78000 -0- Remaining useful life 10 years -0- 10 years Useful life -0- Annual operating costs $208000 $156000 If the old machine is replaced, it can be sold for $20800. 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 $260000 O $78000 O $52000 O $182000 Click if you would like to Show Work for this question: Open Show Work

Name: Question 8Coronado Industries is contemplating the replacement of an
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Description: Question 8Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered:Old MachineNew MachinePrice$260000$520000Accumulated Depreciation78000-0-Remaining useful life10 years-0-Use

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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I got the correct answer for first-year problem A) 8500/ second year 8500 Problem B i had first year 1700 but the second year i had 16150 not sure if it is correct
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Chapter 10, Question 6
ex2. Differential Analysis for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for two years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, eight-year life $38,000 Annual depreciation (straight-line) 4,750 Annual manufacturing costs, excluding depreciation 12,400 Annual nonmanufacturing operating expenses 2,700 Annual revenue 32,400 Current estimated selling price of the machine 12,900 New Machine Cost of machine, six-year life $57,000 Annual depreciation (straight-line) 9,500 Estimated annual manufacturing costs, exclusive of depreciation 3,400 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Required: 1. Prepare a differential analysis as of November 8 comparing…
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