21 estion 21 3.57 points Save Answe Fletcher Corporation is considering buying a new...
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Accounting
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estion 21 3.57 points Save Answe Fletcher Corporation is considering buying a new machine for $35,000. The current machine they are using was purchased at a cost of $60,000. The book value of their current machine is $20,000 and it will have a salvage value of $5,200 in five years, but if sold today, it could be sold for $10,920. Both machines have an expected useful life today of 5 years. The operating costs of the new machine would be $7,500 while the current machine requires $11,000 in operating costs. If purchased, the new machine will have no salvage value at the end of the five years. The incremental loss associated with purchasing the new machine is: O a. ($25,780) O b.(S6,580) O c. ($7,530) O d.($9,080) O e.($11,780)
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