Old Equipment New Equipment Current book value $400,000 Current market value $600,000 Acquisition cost $1,000,000 Remaining life (years) 10 Life (years) 10 Associated annual sales $300,000 Associated annual sales $450,000 Associated operating expenses $120,000 Associated operating expenses $150,000 Annual depreciation $40,000 Annual depreciation $100,000 Accounting salvage value $0 Accounting salvage value $0 Expected salvage value $100,000 Expected salvage value $200,000