Retain equipment | Replace equipment | Net income increase (decrease) | |
Operating expense (25800*6) | 154800 | -154800 | |
Repair costs | 45500 | -45500 | |
Rental revenue | 69000 | -69000 | |
New machine cost | 194000 | 194000 | |
Sale of old machine | 28500 | -28500 | |
Total cost | 297800 | 194000 | -103800 |
Darcy Roofing is faced with a decision. The company relies very heavily on the use of...
Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on large homes and commercial properties. Last year, Darcy Roofing spent $67,800 refurbishing the lift. It has just determined that another $32,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $136,000. The company estimates that both lifts would have useful lives of 6 years. The new lift is...
Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on large homes and commercial properties. Last year, Darcy Roofing spent $73,200 refurbishing the lift. It has just determined that another $39,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $166,500. The company estimates that both lifts would have useful lives of 6 years. The new lift is...
Bryant Company has a factory machine with a book value of $85,700 and a remaining useful life of 5 years. It can be sold for $26,500. A new machine is available at a cost of $468,800. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $647,500 to $550,000. Prepare an analysis showing whether the old machine should be retained or replaced. (In the first two columns, enter...
Brief Exercise 20-7 Your answer is partially correct. Try again Bryant Company has a factory machine with a book value of $93,000 and a remaining useful life of 5 years. It can be sold for $33,400. A new machine is available at a cost of $363,600. This machine will have a 5-year useful life with no salvage value. The new machine brings annual variable manufacturing costs from $562,100 to $610,700. Prepare an analysis showing whether the old machine should be...
Bryant Company has a factory machine with a book value of $85,100 and a remaining useful life of 7 years. It can be sold for $25,200. A new machine is available at a cost of $394,100. This machine will have a 7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $647,000 to $483,700. Prepare an analysis showing whether the old machine should be retained or replaced. (In the first two columns, enter...
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Brief Exercise 20-07 Bryant Company has a factory machine with a book value of $94,300 and a remaining useful life of 8 years. It can be sold for $28,500. A new machine is available at a cost of $327,000. This machine will have a 8-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $551,200 to $504,800. Prepare an analysis showing whether the old machine should...
Bryant Company has a factory machine with a book value of $93,700 and a remaining useful life of 7 years. It can be sold for $34,700. A new machine is available at a cost of $378,500. This machine will have a 7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $605,900 to $457,900. Prepare an analysis showing whether the old machine should be retained or replaced. (In the first two columns, enter...
Bryant Company has a factory machine with a book value of
$90,000 and a remaining useful life of 5 years. It can be sold for
$30,000. A new machine is available at a cost of $400,000. This
machine will have a 5-year useful life with no salvage value. The
new machine will lower annual variable manufacturing costs from
$600,000 to $500,000. Prepare an analysis showing whether the old
machine should be retained or replaced. (Enter negative
amounts using either a...
s.com/courses/28179/askonment2214890modle tem id-9487433 Question 5 View Policies Current Attempt in Progress Sarasota Company has a factory machine with a book value of $86,300 and a remaining useful life of 7 years, It can be sold for $33,500 A new machine is availab at a cost of $359000 This machine will have a 7-year useful life with ro salvage value. The new machine wil lower annal variable manufacturing costs from $623.300 to 5461 800 Prepare an analysis showing whether the old...
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine Original purchase cost $14,900 $24,600 Accumulated depreciation $6,700 Estimated annual operating costs $24,500 $19,500 Remaining useful life 5 years 5...