Question: Tucker Company is considering replacing a machine. The machine had originally cost $ 1 2 , 0 0 0 . It has accumulated depreciation of

Tucker Company is considering replacing a machine. The machine had originally cost $12,000. It has accumulated depreciation of $4,000. The current market value of the machine is $7,000. Based on this information alone
Multiple Choice
the original cost of the asset is relevant to a replacement decision.
the Company should not replace the machine because doing so would require the recognition of a $1,000 loss on the disposal of the machine.
the market value of the machine is relevant to a replacement decision.
the book value of the machine is relevant to a replacement decision.
Tucker Company is considering replacing a

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