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Which one of the following is most relevant to an equipment-replacement decision (assume no tax...

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Accounting

Which one of the following is most relevant to an equipment-replacement decision (assume no tax effects) used in a trade or business?

Multiple Choice

  • Current disposal (salvage) value of the old equipment.

  • Original cost less accumulated depreciation of the old equipment.

  • Original cost of the old equipment.

  • A lump-sum write-off amount from the disposal of the old equipment.

  • Gain or loss on the disposal of the old equipment.

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