One of the employees of Davenport Corporation recently was i…
One of the employees of Davenport Corporation recently was involved in an accident with one of the corporation’s delivery vans. The corporation is either going to repair the damaged van or sell it as is and buy a comparable used van. Information related to this decision is provided below: Initial cost of the damaged van $30,000 Accumulated depreciation to date on van $18,000 Salvage value of van immediately before crash $9,000 Salvage value of van immediately after crash $1,000 Cost to repair damaged van $5,000 Cost of a comparable used van $10,000 Based on the information above, Davenport would be financially better off: