Advantage-disadvantage of replacing the old equipment


If the old equipment is replaced now, it can be sold for $60,000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is:

a) $60,000

b) $15,000

c) $75,000

d) $90,000

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Accounting Basics: Advantage-disadvantage of replacing the old equipment
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