Bryant Company has a factory machine with a book value of $ 86,000 and a remaining useful life of 7 years. It can be sold for $ 30,900. A new machine is available at a cost of $429,700. This machine will have a 7-year useful life with no salvage value. The new machine brings annual variable manufacturing costs from $ 576,000 to $ 459,000. Prepare an analysis showing whether the old machine should be retained or replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		Retain Equipment		Replace Equipment		Net Income Increase (Decrease)
Variable manufacturing costs		$ enter a dollar amount		$ enter a dollar amount		$ enter a dollar amount
New machine cost		enter a dollar amount		enter a dollar amount		enter a dollar amount
Sell old machine		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total		$ enter a total amount for this column		$ enter a total amount for this column		$ enter a total amount for this column

The old factory machine should be select an optionselect an option retained replaced .