please i need a clear details of the process and answers.

Oscar Clemente is the manager of Forbes Division of Pitt, India manufacturer of blotech products Forbes Division, which has $4.05 million in assets, manufactures a special testing device at the beginning of the current year Forbes invested $509 million in automated equipment for test machine assembly. The division's expected income statement at the beginning of the year was as follows: 526,030,000 Sales revenue Onating costs Variable Few all cash Depreciation New event Other Division operating prof 20190.000 250.000 1,600,000 99.000 58,00.000 A sales representative from USI Machine Company approached Oscar in October. Si nos for $615 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fixed costs by 5 percent. It would be depreciated for accounting purposes over a three year life. Depreciation would be net of the $597.000 salvage value of the new machine. The new equipment meets Potts 12 percent cost of capital criterion Oscar purchases the new machine, it must be installed prior to the end of the year. For practical purposes, though, Oscar can ignore depreciation on the new machine because it will not go into operation until the start of the next year The old machine, which has no salvage Value, must be disposed of to make room for the new machine. Pit has a performance evaluation and bonus plan based on residual income Pitt uses a cost of capital of 12 percent in computing residual income. Income includes any losses on disposal of equipment. Investment is computed based on the end of year balance of assets. net book value. Ignore taxes Required: a. What is Forbes Division's residual income if Oscar does not acquire the new machine? b. What Is Forbes Division's residual income this year if Oscar acquires the new machine? c. If Oscar acquires the new machine and operates it according to specifications, what residual income is expected for next year? (Enter your answers in thousands of dollars. Negative amounts should be indicated by a minus sign. Round your answers to the nearest whole dollars) 30 Residual income Residual income Residual income ic Oscar Clemente is the manager of Forbes Division of Pitt, India manufacturer of blotech products Forbes Division, which has $4.05 million in assets, manufactures a special testing device at the beginning of the current year Forbes invested $509 million in automated equipment for test machine assembly. The division's expected income statement at the beginning of the year was as follows: 526,030,000 Sales revenue Onating costs Variable Few all cash Depreciation New event Other Division operating prof 20190.000 250.000 1,600,000 99.000 58,00.000 A sales representative from USI Machine Company approached Oscar in October. Si nos for $615 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fixed costs by 5 percent. It would be depreciated for accounting purposes over a three year life. Depreciation would be net of the $597.000 salvage value of the new machine. The new equipment meets Potts 12 percent cost of capital criterion Oscar purchases the new machine, it must be installed prior to the end of the year. For practical purposes, though, Oscar can ignore depreciation on the new machine because it will not go into operation until the start of the next year The old machine, which has no salvage Value, must be disposed of to make room for the new machine. Pit has a performance evaluation and bonus plan based on residual income Pitt uses a cost of capital of 12 percent in computing residual income. Income includes any losses on disposal of equipment. Investment is computed based on the end of year balance of assets. net book value. Ignore taxes Required: a. What is Forbes Division's residual income if Oscar does not acquire the new machine? b. What Is Forbes Division's residual income this year if Oscar acquires the new machine? c. If Oscar acquires the new machine and operates it according to specifications, what residual income is expected for next year? (Enter your answers in thousands of dollars. Negative amounts should be indicated by a minus sign. Round your answers to the nearest whole dollars) 30 Residual income Residual income Residual income ic