At the Wedge Natural Co-op in Minneapolis, employees talked about how the long-time general manager had fired almost the entire staff when he took over because they did not show the work ethic he required. Thisreinforced the idea that, though it had grown out of the hippie culture of the 1970s, the food co-op was a serious business that delivered great customer service and made money for its member-owners.

Amachine purchased three years ago for $720,000 has a current book value using straight-line depreciation of $400,000: its operating expenses are $60,000 per year. a replacement machine would cost $480,000, have a useful life of nine years, and would require $26,000 per year in operating expenses. it has an expected salvage value of $130,000 after nine years. the current disposal value of the old machine is $170,000: if it is kept 9 more years, its residual value would be $20,000. calculate the total costs in keeping the old machine and purchase a new machine. should the old machine be replaced?

For each example identify the most appropriate ctso

Last year, johnson mills had annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. the firm paid $700 in dividends and had a tax rate of 35 percent. the firm added $2,810 to retained earnings. the firm had no long-term debt. what was the depreciation expense?