Construct new equipment and sell the old equipment

Reference no: EM132730492

Bruce and Emmett (B & E) is considering a significant equipment replacement. B & E would like to replace some of their equipment before December 31, 2019. The equipment originally cost $500,000 and the equipment's accumulated depreciation balance at the end of 2019 is will be $450,000. At this point the equipment is depreciated to its salvage value.

Your long-term asset accountant, Boris, tells you about four equipment options as follows:

Question 1. construct new equipment and sell the old equipment,

Question 2. exchange the old equipment for new equipment that is more efficient,

Question 3. purchase new equipment that is more efficient and sell the old equipment, or

Question 4. overhaul the old equipment.

Reference no: EM132730492

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