Correa international purchased equipment in january 2016 for $387,000. the equipment had a useful life of 10 years and they used straight-line depreciation. equipment values declined in 2019 due to the release of a new model, and correa recorded a loss on impairment of $62,000 on november 18, 2019. in february 2020, equipment values increased again because of problems with software in the new model. the market value for old models hit $250,000 in march 2020. if correa continues to use their old model in 2020, how would they handle the value of the equipment on december 31, 2020?
the answer is d, opportunity costs.
defragmentation preventive maintenance
maybe electronic theft, but not sure