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Social Science Clinic => Accounting => Topic started by: natalie2426 on Mar 6, 2021

Title: When replacing an old machine with a new machine, the book value of the old machine is a relevant cost.
Post by: natalie2426 on Mar 6, 2021

Question 1

Which of the following is true in a decision to keep or replace existing equipment?
◦ The book value of the old equipment is relevant.
◦ The disposal value of the old equipment is relevant.
◦ Property taxes is relevant.
◦ Depreciation on the new equipment is relevant.

Question 2

When replacing an old machine with a new machine, the book value of the old machine is a relevant cost.
◦ true
◦ false

Title: When replacing an old machine with a new machine, the book value of the old machine is a relevant cost.
Post by: chinwesucks on Mar 6, 2021

Answer 1

The disposal value of the old equipment is relevant.

Answer 2

false