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ces TB MC Qu. 10-97 (Algo) Sooky has a spotter truck with a book value... Sooky has a spotter truck with a book value

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ces TB MC Qu. 10-97 (Algo) Sooky has a spotter truck with a book value... Sooky has a spotter truck with a book value of $57,000 and a remaining useful life of five years. At the end of the five years the spotter truck will have a zero-salvage value. ISooky can purchase a new spotter truck for $137,000 and receive $32,700 in return for trading in its old spotter truck. The old spotter truck has variable manufacturing costs of $92,000 per year. The new spotter truck will reduce variable manufacturing costs by $26,700 per year over the five-year life of the new spotter truck. The total Increase or decrease in income by replacing the current spotter truck with the new truck is: Multiple Choice $32,700 decrease $32,700 increase $29,200 decrease $137,000 decrease $29,200 Increase

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