About my printing press?

The Tattler has a printing press sitting idly in its back room. The press has no market value to another print?

• The Tattler has a printing press sitting idly in its back room. The press has no market value to another printer because the machine utilizes old technology. The firm could get $125 for the press as scrap metal. The press is 6 years old and originally cost $148,000. The current book value is $2,370. The president of the firm is considering a new project and feels he can use this press for that project. What value, if any, should be assigned to the press as an initial cost of the new project? $0 $125 $2,245 $2,370 $2,495

• Answer:

  I would say $0 since it is 6 years old and the company has probably already depreciated the original purchase cost of it over 5 years which would leave nothing left to depreciate and thus no initial cost of the press. Also, since the company already purchased the press, and there is no additional purchase to be made of the press for the project, there is no cost associated either.