Multiple Choice $34,200 decrease. $64,000 decrease. $158,000 increase. $91,000 Increase. $64,000 increase

Tanner Compony has old equlpment book value of S171.OOO and remelnlng five-year useful Ilfe. Tanner Is conslderlng purcheslng new egulpment ot a prlce of$222.OOO_ Tanner cen sell the old equlpmenl now for S148.OOO_ The old equlpment hes varlable manufacturlng costs of $80,000 per year. The new equlpment wlll reduce vorlable manufacturlng costs by $33,000 per year over Its five-year useful Ilfe The total Increase or decrease In net Income by repleclng the old equlpment wlth the new equlpment Is: Multlple Cholce o o o o o 334.200 decrease. 364.000 decrease SIE8.ooo 591.000 Increase. 364.000 Increase.