Nalton Moran manages the cutting department of Greene Zachary Company He purchased a tree-cutting machine on January 1, year 2, for $490,000. The machine had an estimated useful life of 5 years and zero salvage value, and the cost to operate it is $103,000 per year. Technological developments resulted in the development of a more advanced machine available for purchase on January 1 , year 3, that would allow a 30 percent reduction in operating costs. The new machine would cost $330,000 and have a 4 year useful life and zero salvage value. The current market value of the old machine on January 1, year 3 , is $260,000, and its book value is $392,000 on that date. Straight-line depreciation is used for both machines. The company expects to generate $240,000 of revenue per year from the use of elther machine. Required a. Recommend whether to replace the old machine on January 1 , year 3 . b. Prepare income statements for four years (year 3 through year 6 ) assuming that the old machine is retained. c. Prepare income statements for four years (year 3 through year 6 ) assuming that the old machine is replaced. Complete this question by entering your answers in the tabs below. Recommend whether to replace the old machine on January 1 , year 3 .. Walton Moran manages the cutting department of Greene Zachary Company He purchased a tree-cutting machine on January 1 , year 2. for $490,000. The machine had an estimated useful llfe of 5 years and zero salvage value, and the cost to operate it is $103,000 per year. Technological developments resulted in the development of a more advanced machine available for purchase on January 1 , year 3, that would allow a 30 percent reduction in operating costs. The new machine would cost $330,000 and have a 4 -year useful life and zero salvage value. The current market value of the old machine on January 1 , year 3 , is $260,000, and its book value is $392,000 on that date. Stralght-line depreciation is used for both machines. The company expects to generate $240,000 of revenue per year from the use of either machine. Required a. Recommend whether to replace the old machine on January 1 , year 3 . b. Prepare income statements for four years (year 3 through year 6 ) assuming that the old machine is retained: c. Prepare income statements for four years (year 3 through year 6 ) assuming that the old machine is replaced. Complete this question by entering your answers in the tabs below. Prepare income statements for four years (year 3 through year 6 ) assuming that the old machine is retained. Walton Moran menages the cutting department of Greene Zachary Company He purchased a tree-cutting machine on January 1 , year 2, for $490.000. The mechine had an estimated useful life of 5 years and zero salvage value, and the cost to operate it is $103,000 per year. Technological developments resulted in the development of a more advanced machine available for purchase on January 1 . year 3 , that would allow a 30 percent reduction in operating costs. The new machine would cost $330,000 and have a 4 year useful life and zero salvage value. The current market value of the old machine on January 1, year 3 , is $260,000, and its book value is $392,000 on that date. Straight-line depreciation is used for both machines. The company expects to generate $240,000 of revenue per year from the use of elther machine. Required a. Recommend whether to replace the old machine on January 1, year 3 . b. Prepare income statements for four years (year 3 through year 6 ) assuming that the old machine is retained. c. Prepare income statements for four years (year 3 through year 6 ) assuming that the old machine is replaced. Complete this question by entering your answers in the tabs below. Prepare income statements for four years (year 3 through year 6 ) assuming that the old machine is replaced