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AB-Care paid $59,860 for an x-ray machine 4 years ago. The equipment was expected to have a useful life of 13 years from the date

AB-Care paid $59,860 for an x-ray machine 4 years ago. The equipment was expected to have a useful life of 13 years from the date of acquisition with no residual value. The annual operating costs, without depreciation, are $35,916. An improved x-ray device incorporating the new technology is available at a purchase cost of $69,860. In terms of revenue, both teams would generate the same total revenue. However, this new equipment will reduce annual operating costs, without depreciation, to $23,944. The useful life of the new equipment was estimated at 9 years with no residual value. It is estimated that the old equipment will have to be confiscated because it would be difficult to find a buyer for it. AB-Care's accountant performed the following differential analysis related to the replacement of the X-ray machine. After reviewing this analysis, the company manager performed his own differential analysis and determined to accept the proposal to acquire the new equipment based on the fact that it would generate savings.

Savings in operational expenses $107748

Less: loss due to undepreciated cost of obsolete equipment $41442

Less: Cost of acquiring new equipment $69,860 L

oss if the equipment is replaced $-3554

Please indicate how much the correct savings from replacement if the relevant costs of this situation are analyzed. (DO NOT use commas, $ symbols, or decimals)

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