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The gilbert instrument corporation is considering replacing

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The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to share guitar sides. The steamer, purchased just 2 years ago, is being depreciated on a straight line basis and has 6 years of remaining life. Its current book value is 3,900, and it can be sold on an Internet auction site for $4,500 at this time. Thus, the annual depreciation expense is $4,00/6=650 per year. If the old steamer is not replaced, it can be sold for $800 at the end of its useful life.

Reference no: EM13479347

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