Torikatsu Company purchased a machine for P 100,000; current accumulated depreciation totals P 40,000. Management is contemplating the purchase of a new machine for P 120,000. Current disposal of the old machine would cost P 60,000. What is the correct category for each item? O Sunk: P 100,000 cost of old machine Relevant: P 120,000 cost of new machine, P 60,000 disposal of old machine

Torikatsu Company purchased a machine for P 100,000; current accumulated depreciation totals P 40,000. Management is contemplating the purchase of a new machine for P 120,000. Current disposal of the old machine would cost P 60,000. What is the correct category for each item? O Sunk: P 100,000 cost of old machine Relevant: P 120,000 cost of new machine, P 60,000 disposal of old machine

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 19E

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