Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $$50,000$ and a

remaining useful life of five years. It can be sold now for $$60,000.$ Variable manufacturing costs are $$48,000$ per year for this old

machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five

years.

$($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?

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Compute the income increase or decrease from replacing the old machine with Machine A$.$

Note: Amounts to be deducted should be indicated with a minus sign.