The old boiler was sold for 4000. what amount should renn, Ask an Expert

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On January 2, 2007, Renn Corp. replaced its boiler with a more efficient one. The following information was available on that date:

Purchase price of new boiler $150,000
Carrying amount of old boiler 10,000
Fair value of old boiler 4,000
Installation cost of new boiler 20,000

The old boiler was sold for $4,000. What amount should Renn capitalize as the cost of the new boiler?

a. $170,000.

b. $166,000.

c. $160,000.

d. $150,000.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M995143

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