6 pts 23) ABC Company has a piece of manufacturing equipment with a book value of $40,000 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $22,000. Granfield can purchase a new machine for $120,000 and receive $22,000 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $19,000 per year over the four-year life of the new machine. Will the purchase of the new machine cause net income to increase or decrease? By how much will net income increase or decrease? *You must show your work in the space below in order to get full credit. d Do NEW Price 12oou 12000 I 2000 98000 -19060 - 12 Page 7 of 14