Business, 21.04.2020 04:40 shadowentity43

One of the employees of RF Corporation recently was involved in an accident with one of the corporation's delivery vans. The corporation is either going to repair the damaged van or sell it as is and buy a comparable used van. Information related to this decision is provided below:

Initial cost of damanged van $30,000
Accumulated depreciation to date on van $18,000
Salvage value of van immediately before crash $ 9,000
Salvage value of van immediately after crash $ 1,000
Cost to repair damaged van $ 5,000
Cost of a comparable used van $10,000

Based on the information above, RF would be better off by:

A) $1,000 to buy the comparable van.
B) $2,000 to buy the comparable van.
C) $2,000 to repair the damaged van.
D) $3,000 to repair the damaged van.
E) $4,000 to repair the damaged van.

Answers: 2

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One of the employees of RF Corporation recently was involved in an accident with one of the corporat...

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