Chung Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: If the old equipment is replaced now, it can be sold for $60,000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. Which of the following amounts is irrelevant to the replacement decision?

Old Equipment. New Equipment.

Purchase Price: $225,000. $375,000

Accumulated Depreciation: $90,000. 0

Annual Operating Costs: 300,000. 240,000

a. $375,000

b. $135,000

c.$315,000

d. $60,000

How do I solve this?

Thank you