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$30,000Accumulated depreciation to date on van$18,000Salvage value of van immediately before crash$9,000Salvage value of van immediately after crash$1,000Cost to repair damaged van$5,000Cost of a comparable used van$10,000Based on the information above, Davenport would be financially better off:
A. $1,000 by buying the comparable van.
B. $2,000 by repairing the damaged van.
C. $4,000 by repairing the damaged van.
D. $2,000 by buying the comparable van.
Answer: C
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