SuitCity Purchased an Operating Asset Expected to Benefit the Company

Multiple Choice

SuitCity purchased an operating asset expected to benefit the company for 10 years for a cost of $100,000 cash.The old operating asset was fully depreciated and was kept in operations.What effect will acquiring this asset have on the performance measurement of an investment centre?

A) a negative effect
B) a positive effect
C) No effect since cash replaces the asset sold.
D) More information is needed to determine the effect.