Current disposal value of old machine is relevant when it is an expected future benefit that will only occur if the company replaces the machine.

Question

Quizplus · Accepted Answer

The current disposal value of an old machine is relevant when it is an expected future benefit that will only occur if the company replaces the machine. This is because if a company plans to replace the old machine, the disposal value will be an important factor in determining the cost of the new machine. However, if the company does not plan to replace the old machine, the disposal value may not be relevant in the short term.

Current Disposal Value of Old Machine Is Relevant When It