help

Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of four years. It can be sold now for $55,000. Variable manufacturing costs are $49,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Machine A Machine B $ $ Purchase price 122,000 137,000 Variable manufacturing costs 21,000 13,000 per year (a) Compute the income increase or decrease from replacing the old machine with Machine A (b) Compute the income increase or decrease from replacing the old machine with Machine 8. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Reqc Req A Req B and D Compute the income increase or decrease from replacing the old machine with Machine (Amounts to be deducted should be indicated with a minus sign.) Income Machine A: Keep or Keep Replace Analysis Increase Replace (Decrease) from Replacing Revenues Sale of existing machine $ 0 $ 55,000 Costs Purchase of new machine $ 0 122,000 Variable manufacturing $ 49,000 21,000 costs Income (loss) $ 49,000 $ 198,000 $ 247,000 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of four years. It can be sold now for $55,000. Variable manufacturing costs are $49,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years Machine A Machine B Purchase price $ 122,000 137,000 Variable manufacturing costs 21,000 13,000 per year (a) Compute the income increase or decrease from replacing the old machine with Machine A (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? id if the machine should be replaced which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Real Reg C Req A and D Compute the income increase or decrease from replacing the old machine with Machine B. (Amounts to be deducted should be indicated with a minus sign.) Income Machine B: Keep or Increase Keep Replace Replace Analysis (Decrease) from Replacing Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing Income (loss) $ 0 $ costs