Balrd Moran manages the cuttIng department of Greene Benson Company. He purchased a tree$-$cutting machine on January $1,$ Year $2,$

for $$370,000.$ The machine had an estimated useful life of $5$ years and zero salvage value, and the cost to operate it is $$85,000$ per

year. Technological developments resulted In the development of a more advanced machine avallable for purchase on January $1,$ Year

$3,$ that would allow a $20$ percent reduction in operating costs. The new machine would cost $$198,000$ and have a $4-$year useful life and

zero salvage value. The current market value of the old machine on January $1,$ Year $3,$ is $$210,000,$ and its book value is $$296,000$ on

that date. Straight$-$IIne depreciation is used for both machines. The company expects to generate $$240,000$ of revenue per year from

the use of elther machine.

Required

a$.$ Recommend whether to replace the old machine on January $1,$ Year $3.$

b$.$ Prepare income statements for four years $($Year $3$ through Year $6)$ assuming that the old machine is retained.

c$.$ Prepare Income statements for four years $($Year $3$ through Year $6)$ assumIng that the old machine Is replaced.

Complete this question by entering your answers in the tabs below.

Required $B$

Required C

Prepare income statements for four years $($Year $3$ through Year $6)$ assuming that the old machine is replaced.

Note: Enter amounts to be deducted with a minus sign.

Please solve Required A$,$ B$,$ and C$.$ Thanks :)