iPad 2:12 AM 99% A edugen.wileyplus.com WileyPLUS Weygandt, Managerial Accounting, 8e Help | System Announcements CALCULATOR PRINTER VERSION 1 BACK NEXT ASSIGNMENT RESOURCES Incremental analysis Do It! Review 7-5 2019 Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on Exercise 7-1 large homes and commercial properties. Last year, Darcy Roofing spent $70,200 refurbishing the lift. It has just Brief Exercise 7-3 determined that another $35,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for Brief Exercise 7-7 $149,500. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus Do It! Review 7-3 would reduce operating expenses by about $23,400 per year. Darcy Roofing could also rent out the new lift for about Do It! Review 7-5 $9,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $22,000 if the new lift is purchased. Exercise 7-2 a-b (Video) Prepare an incremental analysis showing whether the company should repair or replace the equipment. (Enter negative Review Score amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Review Results by Study Objective Retain Replace Net Income Equipment Equipment Increase (Decrease) Operating expenses LA Repair costs Rental revenue New machine cost Sale of old machine Total cost Should company repair or replace the equipment? The equipment be replaced. Click if you would like to Show Work for this question: Open Show Work