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Bloomfield's Has Some Idle Equipment That Is Debt-Free and Also

Question 59

Multiple Choice

Bloomfield's has some idle equipment that is debt-free and also fully depreciated.If the company decides to use this equipment for a new project,what cost,if any,should be included for this equipment in the project's start-up costs?


A) Zero cost
B) Original purchase price of the equipment
C) Original purchase price minus any tax savings realized to date on the depreciation
D) Current market value of the equipment
E) Annual storage cost for the equipment

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