An estimated useful life


Gull Corp. is considering selling its old popcorn machine and replacing it with a newer one. The old machine originally cost $5,000 and has been fully depreciated. Annual costs are $4,000. A high school is willing to buy it for $2,000. New equpiment would cost $18,000 and annual operating costs would be $1,500. Both machines have an estimated useful life of 5 years.. What decision should they make?

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Accounting Basics: An estimated useful life
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