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Granfield Company has a piece of imanufacturing equipment with a book value of 546.000 and a remaining useful life of four years. At the end

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Granfield Company has a piece of imanufacturing equipment with a book value of 546.000 and a remaining useful life of four years. At the end of the four years the equ pment will have a zero-salvage value. Granfield can purchase new requipment for $155.000 and receive. $26,800 in return for trading in its current equipment. The current equipment hab varlable manufacturing costs of $51.000 per year. The new equipment will reduce varlable manufacturing costs by $25.000 per year over its four-yeat life. The total increase or decrease in income by replacing the current equipment with the new equipment is. Multiple Choice 529,200 decrease $100,000 incresse $16,900 decrease 968.200 increase

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