l https://edugen.wileyplus.com/edugen/student/mainfr.uni PRIN. OF ACCT I&I1; Kim
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Question
l https://edugen.wileyplus.com/edugen/student/mainfr.uni PRIN. OF ACCT I&I1; Kimmel, Accounting, 6e CALCULATOR Exercise 20-14 Johnson Enterprises uses a updating its computer with a faster model that would eliminate all of the overtime computer to handle its sales invoices. Lately, business has been so good that i to handle ts sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up Current New $14,800 $25,200 Original purchase cost $7.000 Estimated annual operating costs$24.700 Remaining useful life $20,000 5 years 5 years che current machine vould have zer o salvage value. The new machine is expected to have zero salvage value after 5 $11,800. If operated for the remainder of its useful life If sold now, the current machine would have a salvage years, valu. p amounts. In the third column, enter net income increases as (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the Should the current machine be replaced? positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number g. -45 or Net Income Retain Machine(Decrease) Operating costs New machine cost Salvage value (old) Total The current machine should be Click if you would like to Show Work for this question: Qpen Shox 41 LNK to ttXT Question Attempts: 0 of 5 used SAVE FOR LATER SURKIT ANSWIERExplanation / Answer
Operating cost is recorded in the table for 5 years life of the project. That means, the given annual operating cost are multiplied by 5
Question - 2
The current machine should be replaced
Retain Machine Replace Machine Net Income Inc/Dec Operating costs 123500 100000 23500 New machine cost 0 25200 -25200 Salvage value (old) 0 -11800 11800 Total 123500 113400 10100Related Questions
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