Multiple Choice Question 148 Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation 103200 Remaining useful life Useful life Annual operating costs $275200 $344000 $680000 10 years 0- 10 years $206400 If the old machine is replaced, it can be sold for $32000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is $336000 $68800 $40000 Multiple Choice Question 153 A company has three product lines, one of which reflects the following results Sales $244000 143000 101000 130000 s (26000) Fixed expenses Net loss this product line s eliminated. 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will O decrease by $101000. O decrease by $2300o. O increase by $26000. O increase by $23000