Replace Equipment A machine with a book value of $251,100 has an estimated remaining life of 6 years. A proposal is offered to sell the old machine for $214,000 and replace it with a new machine at a cost of $282,000. The new machine has a 6-year life with no residual value. The new machine would reduce annual direct labor costs from $49,300 to $39,400. a. Prepare a differential analysis dated June 2 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Replace (Alt. 2) Old Machine June 2 Continue with Old Line Item Description Machine Replace Old Machine Differential Effects (Alternative 2) (Alternative 1) (Alternative 2) Revenues: Proceeds from sale of old machine $ Costs: Purchase price Direct labor (6 years) Profit (loss) b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)?