Carling, Inc. is considering disposing of an old machine (asset) that had an original cost of $78,000. The straight-line depreciation expense for the machine is $7,800 per year. It has an estimated remaining useful life of eight years and no residual value. The old machine can be sold for $15,000 only if a new machine is purchased. A new machine with a purchase price of $88,000 is being considered as a replacement. It will have a useful life of eight years and no residual value. Estimated annual variable manufacturing costs will be reduced from $50,000 to $39,000 if the new machine is acquired. Calculate the increase or decrease in Carlings net income for the entire eight years if the new machine is acquired.

PLEASE SHOW ALL THE CALCULATIONS!