Show Me How Calculator Replace Equipment book value of $80,000 has an estimated
ID: 2522039 • Letter: S
Question
Show Me How Calculator Replace Equipment book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,500 and replace it with A machine with a a new machine at a cost of $75,000. The new machine has a five-year life with no residual value. The new machine would costs from $11,200 to $7,400. reduce annual direct labor machine (Alternative a. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old 2). If an amount is zero, enter "0". Use a minus sign to indicate subtracted or negative numbers or a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (AIt. 2) Continue with Old Machine (Alternative 1) Replace Old Machine (Aternative 2) Differential Effect on Proceeds from sale of old machine Costs: 50,500 50,500 Purchase price Direct labor (5 years) Income (Loss) 75,000 b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)? Continue with the old machine V Check My Work Previous Next All work saved.Explanation / Answer
Rreq a: Continue with Replace Differential Old Machine Old Machine Effect on Income Revenue-Proceed of old machine 0 50500 50500 Cost: Purchase price 0 -75000 -75000 Direct labour -56000 -37,000 19,000 Income/(Loss) -56000 -61500 -5500 Req b: Continue with Old machine: Decision