Amemorandum evidencing an oral contract must give some indication that the parties agreed to the terms. under most state laws, the writing also must name the parties and identify the , the consideration, and the essential terms with certainty. in addition, contract for land must state the and describe the property with sufficient to allow the terms to be determined without reference to outside sources.

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine