Machine having salvage value
Downing Company purchased a new machine on October 1, 2012, at a cost of $90,000. The company estimated that the machine has a salvage value of $6,000. The machine is expected to be used for 70,000 working hours during its 8-year life.
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What is the appropriate treatment in an interim financial report for inventory that has cost below market value?
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\When the incremental revenues and expenses are analyzed, the company is better off by:
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