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TB MC Qu. 4-77 (Static) The Young Company has gathered the... The Young Company bought his current printer two years ago

Posted: Sat Feb 19, 2022 2:33 pm
by answerhappygod
TB MC Qu. 4-77 (Static) The Young Company has gathered
the...
The Young Company bought his current printer two years ago for
$6,000, and it has one more year of life remaining. Valley is using
straight line depreciation for the oven. Valley is considering
purchasing new printer. Its price is $2,500 and it would last only
one year. If the new printer is bought now, the old one could be
traded-in for $900.The new print would save $1,800 in annual
ink/toner expenses (Old printer's ink expenses = $4,000, New
printer's ink expenses = $2,200) . At the end of life, the salvage
value of either equipment is zero. If the company replaces the old
printer, what would be the effect on the company’s overall
profit?
Multiple Choice
$900 decrease
$1,800 decrese
$1,600 increase
$200 increase