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Business, 06.05.2020 03:41 deathfire5866

Masters Golf Products, Inc., spent 4 years and $ 1 comma 190 comma 000 to develop its new line of club heads to replace a line that is becoming obsolete. To begin manufacturing them, the company will have to invest $ 1 comma 820 comma 000 in new equipment. The new clubs are expected to generate an increase in operating cash inflows of $ 759 comma 000 per year for the next 14 years. The company has determined that the existing line could be sold to a competitor for $ 245 comma 000. a. How should the $ 1 comma 190 comma 000 in development costs be classified? b. How should the $ 245 comma 000 sale price for the existing line be classified?

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Masters Golf Products, Inc., spent 4 years and $ 1 comma 190 comma 000 to develop its new line of cl...
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