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Differential Analysis for Machine Replacement Ridgeway Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost

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Differential Analysis for Machine Replacement Ridgeway Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $61,500, the accumulated depreciation is $24,600, its remaining useful life is 5 yoars, arid its residual value is negligible, On October 1 of the current year, a proposal was made to replace the present manufacturing procedure with a fully autamatic machine that has a purchase price of $127,900. The autornatic machine has an estimated useful life of 5 years and no significant residual value. For use in evaluating the proposal, the manaperial accountant accurnulated the following annual data on present and proposed operations: a. Prepare a differential analysis dated October 1 to dotermine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Prepare the analysis over the useful ife of the new machine. If an amount is zero, enter " 0. If required, use a minus sign to indicate a loss

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