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The Canton Movie Theatre is considering selling its old popcorn machine and replacing it with a newer one. The old machine originally cost $5,000 and has been fully depreciated. Annual costs are $4,000. Canton high school is willing to buy it for $1,000. New equipment would cost $18,000 and annual operating costs would be $1,500. The new machine has an estimated useful life of 5 years, and the old machine will last another 5 years.Please prepare a proposal and determine if we should replace the old equipment.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9951034

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