Decided to replace equipment with more modem alternative

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Reference no: EM131098383

Four years ago, Warrior Auto Service purchased some new equipment at a cost of $75,000. The equipment has since been depreciated annually using the SOYD method, assuming a life of seven years and a salvage value of $5,000. Due to competitive pressures, the company has now decided to replace the equipment with a more modem alternative. A used equipment dealer has offered to purchase the current equipment for $15,000. How docs this offer compare with the current book value of the equipment?

Reference no: EM131098383

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Decided to replace equipment with more modem alternative : Four years ago, Warrior Auto Service purchased some new equipment at a cost of $75,000. The equipment has since been depreciated annually using the SOYD method, assuming a life of seven years and a salvage value of $5,000. Due to competitive pressure..

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