Cheatem and Howe, Attorneys, relies heavily on a color laser printer to process its paperwork. Recently the
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- Cheatem and Howe, Attorneys, relies heavily on a color laser printer to process its paperwork. Recently the printer has not functioned well and print jobs are not being processed. Management is considering updating the printer with a faster model.
Current Printer | New Model | |
Original purchase cost | P20,000 | P16,000 |
Accumulated depreciation | 11,000 | — |
Estimated operating costs (annual) | 2,000 | 1,000 |
Useful life | 4 years | 4 years |
If sold now, the current printer would have a salvage value of P3,000. If operated for the remainder of its useful life, the current printer would have zero salvage value. The new printer is expected to have zero salvage value after four years.
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