4. Verdugo Industries is considering the replacement of a piece of equipment with a newer...
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4. Verdugo Industries is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price Accumulated depreciation Annual operating costs $140,000 60,000 70,000 $150,000 -0- 45,000 If the old equipment is replaced now, it can be sold for $15,000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. What is the incremental net income or loss) that would result from replacing the old equipment with the new equipment
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