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Patrick Co. has a machine with a book value of $85,000 and a remaining five-year useful life. A new machine is available at a cost
Patrick Co. has a machine with a book value of $85,000 and a remaining five-year useful life. A new machine is available at a cost of $120,500, and Patrick can also receive $64,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $15,000 per year over its five-year useful life. Calculate the incremental income.
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