Dragoo Building Incorporated has a pump with a book value of $259,000 and a four-year remaining life. A new pump is available at a cost of $634,000. Dragoo can receive $49,900 for trading in the old pump. The old pump has variable costs of $329,000 per year. The new pump will reduce variable costs by $149,000 per year over its four-year life. The total impact to Dragoo Building Incorporated over the pump's four-year life is: Multiple Choice Decrease of $49,900. Increase of $11,900. Decrease of $634,000. Decrease of $11,900.

Dragoo Building incorporated has a pump with a book value of $259,000 and a four-year remaining life. A new pump is available at a cost of $634,000. Dragoo can receive $49,900 for trading in the old pump. The old pump has variable costs of $329,000 per year. The new pump will reduce variable costs by $149,000 per year over its four-year life. The total impact to Dragoo Building incorporated over the pump's four-year life is: Multiple Chaice Decrease of $49,900 increase of $11,900 Decrease of $634.000. Decrease of $11,900