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Which of the following costs is NOT RELEVANT?

Which of the following costs is NOT RELEVANT?

FINANCIAL ACCOUNTING
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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Gingerbread Resources Inc. is considering the purchase of an Industrialized Oven to replace the oven now in use. Selected information on the two machines follows: Industrialized Oven $ 500,000 Original cost/New cost Accumulated depreciation to date Money spent on repairs to date Estimated cost per year to operate Salvage Value of old machine Remaining years of useful life Original Oven $ 350,000 $ 250,000 $ 20,000 $ 50,000 $ 60,000 5 $ 0 $ 30,000 lyears 5 lyears Which of the following costs is NOT RELEVANT? O Salvage Value of Old Machine O Cost of new machine Money spent on repairs Estimated cost to operate
Transcribed Image Text:Gingerbread Resources Inc. is considering the purchase of an Industrialized Oven to replace the oven now in use. Selected information on the two machines follows: Industrialized Oven $ 500,000 Original cost/New cost Accumulated depreciation to date Money spent on repairs to date Estimated cost per year to operate Salvage Value of old machine Remaining years of useful life Original Oven $ 350,000 $ 250,000 $ 20,000 $ 50,000 $ 60,000 5 $ 0 $ 30,000 lyears 5 lyears Which of the following costs is NOT RELEVANT? O Salvage Value of Old Machine O Cost of new machine Money spent on repairs Estimated cost to operate
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