Illustrate what is the first cost that should be used

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equipment purchased 2 years ago was expected to last 5 years with a salvage value of $5000. It was upgraded 1 year ago @ $30,000 the increase demand now requires a new upgrade @ $25,000 or replacement of the equipment @ $85,000. The existing equipment will be sold for $6,000. Illustrate what is the first cost that should be used?

Reference no: EM1348388

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