Determine whether the old machine should be retained

Assignment Help Financial Accounting

Reference no: EM131204357

Kobe Company has a factory machine with a book value of $85,590 and a remaining useful life of 5 years. It can be sold for $31,030. A new machine is available at a cost of $247,620. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $758,770 to $624,180. Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Retain Equipment Replace Equipment Net 5-Year Income Increase (Decrease) Variable manufacturing costs for 5 years $ $ $ New machine cost Sell old machine Total $ $ $ (set up as a table)

Determine whether the old machine should be retained or replaced.

The old machine should be __________.

Reference no: EM131204357

Questions Cloud

Example of management activity referred to as planning : Which of the following is an example of the management activity referred to as planning?

Can such an argument apply to free education : What kind of argument based on asymmetric information could support the claim that free meals (an in-kind transfer) are better than the cash handout? Can such an argument apply to free education?

How will net income and net loss be divided : A dispute has risen among partners. jenson has invested twice as much in assets as the other two partners and he believes net income and net losses should be shared in accordance with the capital ratio . the partnership agreement does not specify the..

What is the minimum level of s that will achieve separation : Suppose that the signal is no longer available. Which kinds of job will be filled by which types of workers, and at what wages? Who gains and who loses?

Determine whether the old machine should be retained : Kobe Company has a factory machine with a book value of $85,590 and a remaining useful life of 5 years. It can be sold for $31,030. A new machine is available at a cost of $247,620. This machine will have a 5-year useful life with no salvage value. D..

Requirements for the program-java programming : The program must prompt the user to enter the amount of tickets he/she wants to purchase (must be between 1 and 5) A ticket will be made up of two sets of numbers - a group of 5 numbers and another group of 1 number.

Would a ratings system in theatre be considered censorship : in your opinion, would a ratings system in theatre be considered censorship of the artist or merely a marketing strategy to increase sales (assisting the public in making a decision)?

Calculated straight-line method and half-year convention : For real property placed in service after 1986, depreciation under the MACRS system is calculated using the straight-line method and a half-year convention in the year of acquisition and in the year of disposition. 200% DB method and a mid-month conv..

Can you explain why juveniles of color have higher rates : What correctional policies can be created from the principles of restorative justice (based on indigenous justice principles)? Are these values more compatible with some offenses than others? More appropriate for some types of offenders than other..

User Account

All Pages