19.

Sooky has a spotter truck with a book value of $60,000 and a remaining useful life of five years. At the end of the five years the spotter truck will have a zero-salvage value. iSooky can purchase a new spotter truck for $140,000 and receive $33,000 in return for trading in its old spotter truck. The old spotter truck has variable manufacturing costs of $95,000 per year. The new spotter truck will reduce variable manufacturing costs by $27,000 per year over the five-year life of the new spotter truck. The total increase or decrease in income by replacing the current spotter truck with the new truck is:

20.

Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $49,500 as shown below.

Segment Income (Loss)
Sales	$ 990,000
Variable costs	490,000
Contribution margin	500,000
Fixed costs	549,500
Income (loss)	$ (49,500)

If the backpack division is dropped, all $490,000 of its variable costs are avoidable, and $219,800 of its fixed costs are avoidable. The impact on Granfields income from eliminating this business segment would be: