Hele I System Announcements ent 135 PM/Remaining 15 min |CALCULATOR PR?NTER VERS
ID: 2409706 • Letter: H
Question
Hele I System Announcements ent 135 PM/Remaining 15 min |CALCULATOR PR?NTER VERSIO. .BACK Practice Question 31 with a cost of $30, of $20,000, and a 2 year equipment has a cost of $42,000 and a useful life of 6 years. The seller has offered a trade- remaining useful life. The new allowance of $7,500. The new equipment is much more efficient. Bergeron projects cost savings of $10,000 per year if the new O Cost of new equipment Book value of existing equipment. Cost savings Trade-in allowance of existing equipment. Click il you would like to Show Work for this question: cen Shom Wark Question Attempts: 0 of 1 used wider SAVE FOR LATER version 424.62 of of i RatExplanation / Answer
Answer : Book value of existing asset.
here cost of new asset is considered if new asset purchased then we should show cost of purchase , Cost savings also considered while choosing existing or new asset , trading allowance from existing asset is used for comparing new and existing asset.
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