Coronado Industries is contemplating the replacement of an oldmachine with a new one.. The following information has beengathered:Old Machine New Machine$260000$520000Price78000Accumulated Depreciation0-Remaining useful life10 years-0-10 yearsUseful life-0-Annual operating costs$215000$156000If the old machine is replaced, it can be sold for $20800. Thecompany uses straight-line depreciation with a zero salvage valuefor all of its assetsThe net advantage (disadvantage) of replacing the old machine isO$(5200)O $(52000)$21500$90800

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Asked Nov 10, 2019
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Coronado Industries is contemplating the replacement of an old
machine with a new one.. The following information has been
gathered:
Old Machine New Machine
$260000
$520000
Price
78000
Accumulated Depreciation
0-
Remaining useful life
10 years
-0-
10 years
Useful life
-0-
Annual operating costs
$215000
$156000
If the old machine is replaced, it can be sold for $20800. The
company uses straight-line depreciation with a zero salvage value
for all of its assets
The net advantage (disadvantage) of replacing the old machine is
O$(5200)
O $(52000)
$21500
$90800
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Coronado Industries is contemplating the replacement of an old machine with a new one.. The following information has been gathered: Old Machine New Machine $260000 $520000 Price 78000 Accumulated Depreciation 0- Remaining useful life 10 years -0- 10 years Useful life -0- Annual operating costs $215000 $156000 If the old machine is replaced, it can be sold for $20800. The company uses straight-line depreciation with a zero salvage value for all of its assets The net advantage (disadvantage) of replacing the old machine is O$(5200) O $(52000) $21500 $90800

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Compute the depreciation expense for old and new machinary: Old machine depreciation ($260,000 - S78,000)/10 years = New machine depreciation expense $520,000/10years= $18,200 $52,000

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