7 Electrical Engineering Equipment Ltd. purchased a machine for $100,000, current accumulated amortization totals $40,000 Management is contemplating the purchase of a new machine for $120,000. Current disposal of the old machine would com $65,000. What is the correct category for each item? Select one: a. Irrelevant, $120,000 cost of new machine, 565,000 disposal of old machine and Relevant 100,000 cost of old machine $60,000 book value of old machine, 55.000 gain on sale b. Irrelevant, S100,000 cost of old machine, 840,000 accumulated amortization, $5,000 gain on sale and relevant $120.000 cost of new machine, $65,000 disposal of old machine c. Irrelevant, $100,000 cost of old machine, 540,000 accumulated amortization and Relevant $120,000 cost of new machine, $5,000 gain on sale, $65,000 disposal of old machine O d. Irrelevant, $100,000 cost of old machine, $60,000 book value of old machine and Relevant, $120,000 cost of new machine. $65,000 disposal of old machine, $5,000 gain on sale O e Irrelevant, $120,000 of new machine. $40.000 accumulated amortization and Relevant $100.000 cost of old machine, $65,000 of disposal of old machine. $5,000 gain on sale