I have no idea why its wrong. I tried 5 times already
opez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a emaining useful life of four years. It can be sold now for $56,000. Variable manufacturing costs are $50,000 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 Purchase price $ 118,000 $ 133,000 Variable manufacturing costa per year 20,000 14,000 (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? (d) If the machine should be replaced, which new machine should Lopez purchase? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A Reg B Reg C and D Keep Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minus sign.) Machine A: Keep or Replace Income Increase Analysis Replace (Decrease) from Replacing Revenues Sale of existing machine $ 0 $ 56,000 Costs Purchase of new machine $ 0 (118,000) Variable manufacturing costs $ (200,000) (100,000) Income (loss) $ (200,000) $ (162,000) $ 38,000 ROGA ReqB > 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.) Machine B: Keep or Replace Income Increase Analysis Replace (Decrease) from Replacing Revenues Sale of existing machine $ 0$ 56,000 Costs Purchase of new machine 0 (133,000) Variable manufacturing costs $ (200,000) (70,000) Income (loss) $ (200,000) S (147,000) 53,000 s