please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Exercise 13-19A (Algo) Asset replacement decision LO 13-5Rundle Company is considering the replacement of some of its manufacturing equipment. Information regarding the existingequipment and the potential replacement equipment follows.Existing EquipmentCastOperating expensesSalvage valueMarket valueBook valueRemaining useful life$113,000118,000Old21,00055,00033,000Total costShould the equipment be replaced?6 yearsReplacement Equipment"The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful lifeof the equipmentCostOperating expensesSalvage valueUseful lifeRequiredCalculate the total relevant cost of existing equipment and the potential replacement equipment. Should the equipment be replaced?New$112,00096,00012,0006 years

The relevant cost to determine whether machine should be replaced or not is the cost that would…

Answered: Replacement Equipment $112,000 95,000…

Business

Accounting

Replacement Equipment $112,000 95,000 12,000 Cost Operating expenses Salvage value Useful life 6 years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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