Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and originally r

Question

3 years ago

14

Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and originally r

etailed for $900. At the statement date, each computer has a current replacement cost of $400. What value should Switzer, Inc., have for the computers at the end of the year?

Business

1 answer:

USPshnik [31] · Answer 1 · 2022-03-28T01:13:28+03:00

Switzer Inc. should give the value of the computers at what they are currently worth to replace. After the two years, they now cost $400 to replace them so the value Switzer Inc. should place on their year end report is $400 due to that being the cost to replace in current day.