Answer:
$53,000.
Step-by-step explanation:
To calculate the initial book value of the new equipment, we need to consider the purchase price, shipping cost, and installation cost while accounting for the salvage value of the old equipment being replaced and the expected salvage value of the new equipment.
Purchase price of new equipment: $117,000
Shipping cost of new equipment: $4,000
Installation cost for new equipment: $17,000
Salvage value of old equipment: $53,000
Expected salvage value of new equipment: $32,000
To find the initial book value, we subtract the salvage value of the old equipment, the expected salvage value of the new equipment, and the installation cost from the total cost of the new equipment.
Initial book value = Purchase price + Shipping cost + Installation cost - Salvage value of old equipment - Expected salvage value of new equipment
= $117,000 + $4,000 + $17,000 - $53,000 - $32,000
= $53,000
Therefore, the initial book value of the new equipment is $53,000. The correct answer is option g. $53,000.