Question 31 Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $300,000 $600,000 Accumulated Depreciation 90,000 Remaining useful life -0- Useful life -0- 10 years Annual operating costs $240,000 $180,600 If the old machine is replaced, it can be sold for $24,000. 10 years The net advantage (disadvantage) of replacing the old machine is $18,000 a. $24,000 b. ($6,000) d. ($60,000)