Lynher Ltd has been offered a contract that requires the use of specialised equipment that...
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Accounting
Lynher Ltd has been offered a contract that requires the use of specialised equipment that it has owned for three years. The specialised equipment is no longer used by the company but can be rented to another company. The accountant of Lynher Ltd has provided the following data concerning the machine: Net realisable value Acquisition cost Future rental income from machine Replacement cost f 18,000 25,000 28,000 32,000 What is the relevant cost of the machine when considering the new contract? O A 18,000 B. 28,000 OC. 25,000 D. 32,000
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