5) The Bruce Dickinson Company manufactures cowbells and has a piece of manufacturing equipment with a book value of $47,000 and a remaining useful life of four years. At the end of the four years the equipment will have a zero-salvage value. The company can purchase new equipment for $162,000 and receive $27,600 in return for trading in its current equipment. The urrent equipment has variable manufacturing costs of $53,000 per year. The new equipment vill have variable manufacturing costs of $27,000 per year over its four-year life. he total increase or decrease in income by replacing the current equipment with the new uipment is:

5) The Bruce Dickinson Company manufactures cowbells and has a piece of manufacturing quipment with a book value of $47,000 and a remaining useful life of four years. At the end of he four years the equipment will have a zero-salvage value. The company can purchase new quipment for $162,000 and receive $27,600 in return for trading in its current equipment. The urrent equipment has variable manufacturing costs of $53,000 per year. The new equipment ill have variable manufacturing costs of $27,000 per year over its four-year life. e total increase or decrease in income by replacing the current equipment with the new unment is