The Tattle Teller has a printing press sitting idly in its back room. The press

Question

The Tattle Teller has a printing press sitting idly in its back room. The press has no market value to another printer because the machine utilizes old technology. The firm could get $250 for the press as scrap metal. The press is six years old and originally cost $148,000. The current book value is $2,570. The president of the firm is considering a new project and feels he can use this press for that project. What value, if any, should be assigned to the press as an initial cost of the new project?

$0

$250

$2,245

$2,570

$2,495

Explanation / Answer

Correct Answer

$250

Explanation

Firm will get $250 if press is sold as a scrap it means that when press is being considered for use in the new project then cost assigned to it should be $250 as its value.

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